The initial public offering (IPO) of Burjeel Holdings, a leading MENA private healthcare services provider, received significant demand from investors and closed 29 times oversubscribed. 

 

Total gross demand for the offering amounted to over AED32 billion ($8.71 billion), said the company.

 

On completion of the bookbuild and public subscription process of the IPO, the price for the offering has been set at AED2 per ordinary share (the Final Offer Price) and the offering size has been confirmed at 550,729,221 ordinary shares (Offer Shares), equivalent to 11 per cent of Burjeel’s total issued share capital. 

 

The group believes the offer price per share provides investors with a highly attractive value proposition that reflects the Selling Shareholder’s long-term confidence in Burjeel Holding’s growth trajectory and reflects its decision to prioritise a supportive aftermarket performance post-listing, said a statement.

 

The IPO will result in gross proceeds of AED1.1 billion ($299.5 million) for the company and the selling shareholder, upon settlement. Based on the final offer price, Burjeel’s market capitalisation upon listing is expected to be approximately AED10.4 billion, making it one of the largest private healthcare companies on ADX by market capitalisation.

 

Commenting on the successful completion of the bookbuild, Dr Shamsheer Vayalil Parambath, Founder and Chairman of Burjeel Holdings, said: “I am delighted to welcome our new shareholders to Burjeel Holdings. The strong demand for the IPO which was 29 times oversubscribed reflects the high-quality investment opportunity provided by Burjeel Holdings, built around our clear clinical vision and our strong growth trajectory in the MENA region. 

 

"The offer price reflects our desire to prioritise a supportive aftermarket performance post-listing and we are delighted that Burjeel Holdings will be one of the largest private healthcare companies on ADX once listed. The success of the offering is also due to the supportive Abu Dhabi ecosystem and will help further diversify the local capital markets.”

 

Investors who subscribed via the First Tranche (UAE Retail Offering) will receive an SMS confirmation of their respective allocation on October 8, 2022 with refunds due to commence from the same date. 

 

Listing and the commencement of trading in Burjeel Holdings shares on ADX is expected to take place on October 10, subject to customary closing conditions, under the symbol “BURJEEL” and ISIN “AEE01119B224”. 

 

Upon listing on ADX, VPS Healthcare Holdings will continue to own a majority 70 per cent stake in the company. 

 

In September 2022, International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, announced its acquisition of a 15 per cent stake in Burjeel Holdings in order to scale and diversify its local and regional healthcare investments.

 

Dubai Islamic Bank acted as Lead Manager and First Abu Dhabi Bank acted as Lead Receiving Bank. International Securities acted as Financial Advisor and BHM Capital Financial Services acted as Listing Advisor.

 

J P Morgan Securities (J P Morgan) acted as capital markets advisor to the company and selling shareholder in connection with the offering. - TradeArabia News Service