Fakeeh Healthcare Group’s IPO Boosts Saudi Arabia’s Resurging IPO Market

Saudi Arabia is witnessing a resurgence of its Initial Public Offering (IPO) market, with Fakeeh Healthcare Group becoming the second company in the Kingdom to announce plans for an IPO in recent days. The private hospital group intends to offer a portion of its existing shares as well as newly issued shares on the Saudi Stock Exchange (Tadawul).

Fakeeh Healthcare Group, which operates hospitals in Jeddah and Riyadh, aims to sell a total of 21.47% of its capital post-offering. This includes 30 million new shares and 19.8 million existing shares. The healthcare facilities of the group include four hospitals with a total of 835 beds, outpatient centers, and a college of medical sciences. Additionally, the company owns a university hospital in Dubai.

In the fiscal year 2023, Fakeeh Healthcare Group reported a net profit of 232 million riyals, with an adjusted net profit (excluding Riyadh Hospital) of 414 million riyals, representing a 15.3% year-on-year increase. The proceeds from the IPO will be used to finance the group’s growth strategy and general purposes after deducting offering expenses of 75 million riyals.

The increase in healthcare sector offerings on Tadawul reflects Saudi Arabia’s commitment to strengthening its healthcare system and promoting economic growth through increased investment in this vital sector. Other notable companies like Dr. Sulaiman Al Habib Medical Services Group, Al Nahdi Medical Company, and Jamjoom Pharmaceutical Factory Company have also recently made public offerings on Tadawul.

Overall, Fakeeh Healthcare Group’s IPO announcement signals an optimistic outlook for the future of Saudi Arabia’s IPO market and is likely to attract investors seeking exposure to one of the fastest-growing economies in the region.