The Saudi Stock Exchange, also known as Tadawul, in Riyadh - Bloomberg
RIYADH: Saudi Arabian hospital operator Specialised Medical Co (SMC) had demand for all the shares on offer in its US$500mil initial public offering (IPO), hours after books opened on the deal in Riyadh.
SMC will sell a 30% stake, or 75 million shares, at 24 riyals to 25 riyals (US$6.40 to US$6.67) apiece, according to a statement.
Demand exceeded the number of shares on offer throughout the price range, according to terms of the deal.
Bookbuilding for institutional investors runs until May 15. The top-end of the price range implies a valuation of just under US$1.7bil.
A handful of Middle Eastern firms are pressing ahead with IPO plans, defying broader market volatility linked to US trade policy.
Saudi low-cost carrier Flynas Co could raise about US$1bil in what would be the first Gulf airline listing in nearly two decades.
Tech firm Ejada Systems Ltd is also preparing to launch an IPO, Bloomberg News has reported.
In the United Arab Emirates, a conglomerate owned by Dubai’s ruler is preparing to list a rare real estate investment trust to capitalise on the city’s property boom.
Healthcare is a key pillar of Crown Prince Mohammed bin Salman’s Vision 2030 plan, as Saudi Arabia braces for population growth and rising life expectancy.
Local hospital operators have sought to capitalise on the sector’s expected growth by going public.
Dr Soliman Abdel Kader Fakeeh Hospital and Almoosa Health Co raised US$763mil and US$450mil, respectively, ranking among the largest IPOs in Saudi Arabia in 2024.
SMC operates two hospitals in Riyadh and plans to build three more in the city’s northern region.
It reported revenues of 1.4 billion riyals in 2024 and a net profit of 185 million riyals. — Bloomberg
