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Saudi’s Almoosa Health will start trading on the Saudi main market (Tadawul) tomorrow, signaling a strong start for the kingdom’s capital markets with its 1.68 billion riyals ($450.66 million) IPO.
The hospital operator floated 13.29 million shares, representing 30% of its share capital, allocating 80% of the shares on offer to participating categories, while the remaining 20%, or 2.66 million shares, set aside for retail investors.
The retail subscription saw 395,986 investors subscribing at a final offer price of SAR127 per share, at top of the range, generating a retail tranche oversubscription level of 408.71% with total retail demand of approximately SAR1.4 billion.
The institutional book-building process attracted an order book of approximately SAR 173 billion and was 103 times oversubscribed.
Cornerstone commitments saw 22% of the offer go to insurance firm Tawuniya and conglomerate Alfozan Holding Company.
BSF Capital was lead manager and joint bookrunner, with EFG Hermes, and Moelis advising.
In an interview with Zawya Projects last month, CEO Malek Almoosa said the IPO would facilitate the healthcare group’s expansion in the kingdom’s eastern region.
“Given the strong outlook and growing demand for quality healthcare in Saudi Arabia, particularly in the Eastern Province, we believe this is the right time for us to invest in the growth and expansion of our business, to meet the needs of the region, while inviting new shareholders to be a part of our compelling growth story,” Almoosa said at the time.
(Writing by Bindu Rai, editing by Seban Scaria)
