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Thu 6 Feb 2020 02:22 PM

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Saudi healthcare major said to seek to raise up to $700m from IPO

Dr Sulaiman Al Habib Medical Group's initial public offering will start next week

Saudi healthcare major said to seek to raise up to $700m from IPO
(Photo for illustrative purposes only)

Dr Sulaiman Al Habib Medical Group is seeking to raise as much as SR2.63 billion ($700 million) from an initial public offering that starts next week, according to people familiar with the matter.

The private healthcare operator, one of the largest in Saudi Arabia, will price the shares at 43 to 50 riyals a share, the people said, asking not to be identified because the talks are private.

Based on that price range, and a planned sale of 15 percent of the company, the business will be valued at AED15.1-17.5 billion.

The book-building process for the IPO will start on February 10 and the shares will be priced on February 20, according a document published in the company’s website. The company will offer 52.5 million shares. The company didn’t immediately respond to a request for comment.

The hospital operator’s share sale is the first local listing after Saudi Aramco raised more than $29 billion in December in the world’s biggest IPO. That sale relied mainly on domestic investors.

Dr Sulaiman Al Habib initially planned to sell shares in 2016, people familiar with the matter said at the time.

The company owns and runs seven healthcare facilities and two pharmacy firms, and also operates and manages another seven healthcare centres and two medical solutions businesses, according to the listing document.

It has operations across Saudi Arabia, the United Arab Emirates and Bahrain.

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