Almoosa Health Company, a major healthcare provider in Saudi Arabia’s Eastern Province, announced plans to list 30 percent of its shares on the main Saudi Stock Exchange (Tadawul), joining a wave of firms tapping the Kingdom’s equity market.
The offering follows September’s regulatory approval from the Capital Market Authority and comes amid a busy year for Saudi healthcare IPOs.
The listing could be among the largest in Saudi Arabia this year, following healthcare peer Fakeeh Care Group’s $764 million offering. The sector has seen strong investor interest, with Dr Sulaiman Al Habib Medical Services Group and Saudi German Health trading at price-earnings ratios of 36.1 and 20.6 times respectively.
The Ahsa-based company will offer 13.29 million shares through a combination of new and existing stock, according to a statement Tuesday. The offering comprises 9.3 million new shares and nearly 4 million existing shares, with cornerstone investors Tawuniya and Alfozan Holding committing to take 4.1 percent and 2.5 percent stakes respectively.
The company, which currently operates 730 beds across two hospitals, plans to use the proceeds to fund expansion and reduce debt. Its growth strategy includes doubling bed capacity to 1,430 by 2028 through two new hospitals in Al Hofuf and Khobar, alongside establishing five primary care centres across the Eastern Province.
Almoosa reported revenue of SAR979 million ($261 million) in 2023, with net income of SAR98.1 million. For the first nine months of 2024, revenue reached SAR870 million with net income of SAR40 million.
In an interview with Arabian Business, CEO Malik Almoosa cited strong institutional confidence and favourable market conditions as key factors in the timing for an IPO.
“The commitment we’ve secured from our cornerstone investors at this stage demonstrates strong institutional confidence in our growth strategy and future prospects,” he said.
Almoosa also addressed the company’s expansion strategy, noting that while the firm will evaluate strategic opportunities, its primary focus remains on executing its current growth plans.
“With the Eastern Province of Saudi Arabia estimated to have an acute bed gap of 4,000–5,000 beds by 2030, our strategy is precisely targeted to meet the needs of this region,” he told Arabian Business.
“While we’ll always evaluate strategic opportunities that align with our vision, the successful delivery of our current expansion remains our core priority.”
The company’s expansion plans align with Saudi Arabia’s healthcare market growth, which is forecast to reach SAR360 billion by 2030, growing at 6.5 percent annually. The private sector’s contribution is expected to increase to 25 percent by 2030 from 18 percent in 2023.
The institutional book-building period will begin December 4, with retail subscription scheduled for December 23-24. Saudi Fransi Capital acts as financial advisor and lead manager, while EFG Hermes serves as joint bookrunner.
“By going public, we aim to further expand our capabilities and growth prospects by investing in advanced medical technologies and continuing to deliver exceptional care to our patients. We are excited about the opportunities that our IPO will bring and remain firmly committed to contributing positively to the Kingdom’s burgeoning healthcare sector,” the company’s Chairman, Abdulaziz Almoosa, said in a statement.
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