The UAE-based group, which operates hospitals and medical centers in Oman, plans to list an 11% stake on the main market of ADX.
Burjeel Holdings has announced its intention to list 11 per cent of its share capital in an Initial Public Offering (IPO) on the main market of the Abu Dhabi Securities Exchange (ADX). The UAE-based healthcare services provider opens for subscription on 30 September and closes on 4 October. Shares of the company, which operates three top hospitals and medical centers in Oman, will start trading on the ADX on 10 October.
The IPO announcement follows hot on the heels of the acquisition of a 15% stake in Burjeel Holdings by Abu Dhabi-based International Holding Company IHC, which is the UAE’s largest company by market value. Burjeel Holdings is set to be the first privately owned firm to go public in the UAE this year.
According to the issued prospectus, the company plans to offer about 550.7 million shares, including 350.3 million existing shares to be sold by VPS Healthcare Holdings, which owns 79.8 per cent of Burjeel Holdings. Of the offered shares, 10 per cent are to be allocated under the first tranche and 90 per cent under the second tranche.
The company’s planned listing will provide investors with an opportunity to gain exposure to one of MENA’s leading private healthcare service providers with a vision to ensure quality healthcare and clinical excellence across the region, it said in a release.
In 2021, the Group treated 105 thousand in-patients and 4.8 million out-patients across its network, which includes comprehensive service offerings for oncology, women and child, orthopedics and spine, cardiac science and bariatrics, representing an in-patient market share of approximately 17 per cent and an out-patient market share of approximately 12 per cent as at 30 June 2022.
For the year ended 31 December 2021 and the six months ended 30 June 2022, the Group had revenues of AED 3,351.0 million and AED 1,898.4 million, EBITDA of AED 779.1 million and AED 414.2 million, and net profits of AED 234.1 million and AED 152.9 million, respectively
It has a diversified portfolio of 16 hospitals, including the flagship facility Burjeel Medical City, and 23 medical centers, across the UAE and Oman. In Oman, there is a Burjeel hospital in Muscat and Burjeel Medical Center in Al Azaiba. The Group also has Lifeline hospitals and medical centers in Salalah, Sohar and Lifecare Medical Center in Darsit.
In August 2022, as part of its disciplined approach to capital expenditure and regional expansion, Burjeel Holdings signed a non-binding Memorandum of Understanding with the Kingdom of Saudi Arabia’s Ministry of Investment, which will see the Group collaborate with KSA institutes and healthcare organizations and invest up to USD 1 billion in the Kingdom by 2030.
Commenting on the planned listing, Dr. Shamsheer Vayalil Parambath, Chairman of Burjeel Holdings, said, “I am delighted to announce our intention to list on ADX, providing a unique opportunity for investors to participate in an Abu Dhabi, UAE, and MENA growth story. Our strength is reflected in our strong and profitable financial performance, where we recorded compound annual revenue growth of 18% between 2019-2021 and EBITDA growth of 37%. As we mark another significant milestone in our journey today, I’m confident that our robust business model, relentless focus on clinical excellence, world-class people and strong commitment to governance will all play key roles in the next chapter of our story.”
The prospectus and detailed information about Burjeel Holdings, its IPO and the subscription process can be found at https://www.burjeelholdings.com/ipo.