The Saudi Capital Market Authority has approved two Tadawul main market IPOs as the pipeline continues to build.

Arabian Company for Agricultural and Industrial Investment, which owns poultry brand Entaj, has received approval to offer 9m shares while Almoosa Health Company is approved for an offer of 13.3m shares.

Both offers are for the customary 30% free-float and approval is valid for six months.

Entaj has appointed SNB Capital to run its offer.

According to the company it is one of the largest poultry producers in the country with capacity of 90m birds annually.

Almoosa Health operates across two hospitals in the eastern Al Ahsa region with 800 beds.

Two more hospitals in the eastern cities of Al Khobar and Al Hofuf are under construction with eventual capacity of 400 and 200 beds, respectively.

The company also operates pharmacies and Almoosa College of Health Sciences.

Saudi Fransi Capital has reportedly been selected to run the offer.

Healthcare is widely seen as a key sector for Saudi’s IPO pipeline, though a listing attempt earlier this year by Al Hokail Academy Specialised Digital Polyclinics was pulled to allow the company to demonstrate more growth in the hope of securing a better valuation.

Shortly before that, hospital operator Fakeeh Care Group priced its SR2.9bn (US$773m) IPO at the top of the range. Shares have since traded either side of the SR57.50 issue price, though closed on Tuesday at SR59.10.

Source: IFR