SAUDI ARABIA—Fakeeh Care Group, the largest private hospital chain in Saudi Arabia, has announced plans to go public through an Initial Public Offering (IPO).

The firm, which is recognized for its family-owned heritage and strong presence in important locations such as  Jeddah and Riyadh, intends to issue a combination of new and existing shares.

This IPO will involve offering 30 million new shares and 19.8 million existing shares to investors, totalling a 21.47% ownership, according to a statement.

The offer is the second disclosed in the kingdom on Wednesday, as the IPO market resumes activity after a brief pause earlier this month while markets were closed for the Eid holiday.

This news comes after Saudi Arabia’s efforts to encourage more family-owned firms to list as part of its capital market reforms. 

As part of these changes, Saudi Arabia has encouraged family-owned businesses to pursue initial public offerings (IPOs), generating a more dynamic financial environment and reducing reliance on oil revenue.

Fakeeh Care Group’s IPO announcement comes amid a rise in market activity with Miahona, a water and wastewater infrastructure business, recently announcing share sale ambitions.

This increase in IPOs indicates increased investor interest in the area, which is bolstered by strong economic fundamentals and a favourable regulatory environment.

Saudi Exchange, the Arab world’s largest stock market, has seen an increase in healthcare industry listings in recent years, including hospital company Dr Sulaiman Al Habib, pharmaceutical firm Al Nahdi Medical Co, and generic manufacturer Jamjoom Pharmaceuticals Factory Co. This indicates confidence in the sector’s future prospects.

As Fakeeh Care Group enters the public space, market analysts predict how this milestone will affect both the healthcare scene and the larger Saudi economy.

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