SAUDI ARABIA – Dr. Soliman Abdul Kader Fakeeh Hospital, and its subsidiaries, collectively known as Fakeeh Care Group, are gearing up for a significant move – the sale of a 21.5% stake in an Initial Public Offering (IPO).
This transformative step has attracted the attention of key investors from the UAE and Saudi Arabia.
Olayan Saudi Investment Co. and Abu Dhabi Investment Authority (ADIA) have emerged as cornerstone investors, showing substantial confidence in Fakeeh Care’s future endeavors.
Together, they have pledged to subscribe to a total of 3 million shares at the offer price, underscoring their commitment to the venture.
According to a statement released by Fakeeh Care, Olayan has committed to acquiring 1.95 million shares, which would represent 0.84% of the company’s share capital post-offering.
Similarly, ADIA has pledged to subscribe to 1.04 million shares, constituting 0.45% of the share capital post-IPO.
The institutional book building subscription period kicked off recently and is slated to conclude on 8th May.
Bloomberg News reported that investor response has been robust, with demand covering the entire price range of the offering.
As Fakeeh Care Group strides towards its IPO, market speculations are rife regarding its potential valuation.
The IPO’s pricing range has been set between (US$29.46) per share, aiming to raise up to SAR 2.9 billion (US$763 million).
Lead manager HSBC Saudi Arabia has projected a market capitalization at listing, ranging from (US$3.3 – US$3.6 billion), based on this price range.
The firm’s IPO is structured around the sale of 49.8 million shares, comprising a mix of existing and newly issued shares.
Post-offering, these shares will be listed and traded on Tadawul’s Main Market, marking a significant milestone in Fakeeh Care’s trajectory.
Founded in 1978, Fakeeh Care Group has evolved into one of Saudi Arabia’s largest private hospital conglomerates.
With a strong foothold in the healthcare sector, it currently operates four hospitals and five medical centers, boasting a total of 835 beds.
The IPO proceeds are earmarked to fuel the group’s ambitious growth plans, which include expanding its infrastructure to encompass seven hospitals with 1,675 beds and nine medical centers by 2028.
This strategic expansion underscores Fakeeh Care’s commitment to providing advanced healthcare services and addressing the evolving needs of the region.
Fakeeh Care’s IPO aligns with Saudi Arabia’s broader economic objectives, aiming to diversify revenue streams beyond oil.
By encouraging family-owned enterprises like Fakeeh Care to go public, the kingdom seeks to deepen its capital markets and reduce dependence on oil revenues.
The IPO frenzy in Saudi Arabia mirrors a broader trend across the GCC, with several companies eyeing public listings to capitalize on burgeoning investor interest.
This surge in equity capital markets activity reflects the region’s resilience amid global economic shifts, positioning it as an attractive destination for investment.
As Fakeeh Care Group charts its course towards IPO success, it symbolizes not just a significant financial milestone but also a testament to Saudi Arabia’s burgeoning capital markets and the region’s healthcare evolution.
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