Saudi Healthcare Firm Is Said to Seek Up to $700 Million in IPO

(Bloomberg) -- Dr. Sulaiman Al Habib Medical Group is seeking to raise as much as 2.63 billion riyals ($700 million) from an initial public offering that starts next week, according to people familiar with the matter.

The private health-care 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% of the company, the business will be valued at 15.1 billion riyals to 17.5 billion riyals.

The book-building process for the IPO will start on Feb. 10 and the shares will be priced on Feb. 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.

Financial advisers:

  • Jadwa Investment and Riyad Capital

Bookrunners:

  • Jadwa Investment, Riyad Capital and EFG-Hermes

2019 financial details:

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.

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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 health-care facilities and two pharmacy firms, and also operates and manages another seven health-care centers 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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