NMC healthcare explores IPO, sale options post-restructuring

UAE – NHC, a UAE-based hospital operator, has explored IPO and sale options post-restructuring by appointing Rothschild & Co as the first of two joint financial advisors to review strategic alternatives for its shareholders.

It will also include a potential initial public offering (IPO) and a business sale.

This move follows the completion of NMC’s restructuring process in 2022, which included the exit of 34 core operating companies from administration and the appointment of a new board of directors and leadership teams.

NMC Healthcare, founded by Indian entrepreneur B.R. Shetty in 1975, has been working to recover from financial difficulties that led to its placement under administration in 2020. 

The company disclosed more than US$4.4 billion in debt, which was discovered after a report from short seller Muddy Waters questioned the accuracy of NMC’s financial reporting.

The strategic review, a significant step in NMC’s journey, is poised to explore various options that could potentially enhance the value for stakeholders and the millions of patients the company serves annually. 

NMC, with its 85 hospitals, specialty clinics, and medical facilities under several brands, is a key player in the healthcare sector.

It employs 12,000 people and serves over 5.5 million patients annually.

“We are pleased to explore strategic alternatives for the company at an exciting time in the UAE,” said NMC Healthcare CEO David Hadley. 

He further stated “The market is witnessing rapid population growth and presents an attractive opportunity to provide high-quality medical services across diverse and changing demographics. We are committed to delivering continued value to our stakeholders and the millions of patients we serve every year.” 

The selection of Rothschild & Co. as a financial advisor is a testament to the strategic milestones NMC has achieved since March 2022. 

These include the successful restructuring of NMC, appointing a new board of directors and leadership teams, and resolving material legacy creditor litigation. 

The company has also developed and implemented group-wide strategic business, growth, and digital transformation plans, setting a strong foundation for its future.

While the review of strategic alternatives is conducted, Rothschild & Co will also respond to market enquiries on behalf of NMC Healthcare. 

In due course, a second financial advisor will be appointed to assist with the review process.

NMC Healthcare’s move to explore strategic alternatives comes as the UAE healthcare sector continues to grow rapidly, driven by the country’s increasing population and demand for high-quality medical services. 

The company’s strategic review is expected to be closely watched by investors and industry observers, who will monitor its outcome and potential impact on the healthcare sector in the UAE.

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