Fakeeh Care Group to debut on Saudi stock exchange

SAUDI ARABIA – The Saudi Exchange (Tadawul) announced that shares of Dr. Soliman Abdul Kader Fakeeh Hospital (Fakeeh Care Group) will be listed on the exchange on June 5, 2024.

During the first three days of listing, the share will have daily and static price fluctuation limits of +/-30% and +/-10%, respectively. 

From the fourth trading day onwards, the daily price fluctuation limits will revert to +/-10%, while the static price fluctuation limits will no longer apply.

Fakeeh Care Group, a leading healthcare provider in Saudi Arabia, announced the sale of a 21.5% stake in an initial public offering (IPO), raising to SAR 2.9 billion (US$763 million). 

The retail tranche of the IPO was oversubscribed 14.5 times, reaching SAR 4.15 billion (US$1.11 billion).

The company’s top shareholders, brothers Mazen and Ammar Fakeeh will have a combined fortune of at least US$2.5 billion after the sale, while their sister Manal will be worth some US$600 million. 

The Fakeeh family owns about 77% of the company. Mazen stepped down as CEO in 2017 and now serves as managing director.

Fakeeh Care Group operates four hospitals and five medical centers in Saudi Arabia, with a total of 835 beds. 

The company is planning to double its bed capacity by 2028 and is also expanding into medical tourism for Islamic visitors. 

It offers treatments for pilgrims with packages that include everything from insurance to flight bookings and translators.

The healthcare industry is a key target for long-term privatization in Saudi Arabia. 

The government aims to become self-sufficient in areas including generic drugs. 

The sector has already made Crown Prince Mohammed bin Salman the kingdom’s second-richest person and is expected to continue growing in the next 10 years.

“We’re already seeing more entrepreneurship in healthcare and more investors looking at this industry, so in the next 10 years, we have high expectations of growth in private healthcare,” said Helmut Schuehsler, chairman and chief executive officer of TVM Capital Healthcare.

The listing of Fakeeh Care Group is the latest example of rapid wealth creation in the Saudi healthcare industry, which has already generated at least US$16.7 billion of wealth for its top shareholders. 

The stock will be traded under the symbol 4017 and ISIN Code SA562GSHUOH7 on the Saudi Exchange.

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