Burjeel Holdings, one of the largest private healthcare providers in the UAE and Oman, today announced its intention to list 11 per cent of its share capital on the main market of the Abu Dhabi Securities Exchange (ADX).
The company’s planned listing will provide investors with an opportunity to gain exposure to one of MENA’s leading private healthcare service providers with a vision to ensure quality healthcare and clinical excellence across the region, the company said.
The subscription period for the listing will open on Friday, September 30, and close on Tuesday, October 4. The company intends to list on ADX on October 10.
The company intends to offer 200,397,665 new shares and VPS Healthcare Holdings (the selling shareholder) intends to offer up to 350,331,555 existing shares in the company’s issued share capital. If all of the shares are subscribed for and allocated and the offer size is not increased, the total offer size is currently expected to be 11 per cent of the enlarged issued share capital of the company, it said.
Of the offered shares, 10 per cent are to be allocated under the First Tranche (as defined in the prospectus to be issued in connection with the IPO and 90 per cent are to be allocated under the Second Tranche (as defined in the prospectus).
Burjeel Holdings provides a comprehensive healthcare ecosystem to patients across the full socio-economic spectrum through its key market leading brands, Burjeel, Medeor, LLH, Lifecare and Tajmeel. Across its brands it operates a fully-funded network of 16 hospitals, 23 medical centres (including polyclinics and specialty medical centres with dental, cosmetic, homecare services, a specialised orthopaedics centre and IVF centres) and 15 pharmacies, as well as seven entities conducting allied services such as central procurement (e.g., GPO), revenue cycle management, centralised diagnostics, central warehousing and patient valet parking services.
In 2021, the group treated 105,000 in-patients and 4.8 million out-patients across its network, which includes comprehensive service offerings for oncology, women and child, orthopaedics and spine, cardiac science and bariatrics, representing an in-patient market share of approximately 17 per cent and an out-patient market share of approximately 12 per cent as at June 30, 2022.
For the year ended December 31, 2021 and the six months ended June 30, 2022, the group had revenues of AED3,351 million and AED1,898.4 million; EBITDA of AED779.1 million and AED414.2 million, and net profits of AED234.1 million and AED152.9 million, respectively.
Commenting on the planned listing, Dr Shamsheer Vayalil Parambath, Chairman of Burjeel Holdings, said:
“I am delighted to announce our intention to list on ADX providing a unique opportunity for investors to participate in an Abu Dhabi, UAE and MENA growth story. Our long-term vision focused on increasing access to quality healthcare and clinical excellence across the region has driven our growth over the past 15 years and today we are one of the leading private healthcare services platforms in the UAE with an unmatched patient offering and diversified portfolio of 16 hospitals, including our flagship facility Burjeel Medical City, and 23 medical centres, across the UAE and Oman.
“Today’s announcement builds on our partnership with IHC which will have a transformative impact for Burjeel Holdings through the addition of new capabilities, capital, and access to new markets. As healthcare expenditure continues to increase across the region, Burjeel Holdings is strongly positioned to benefit through our focus on providing complex, specialized medicine for all socioeconomic groups, through a targeted, multi-brand strategy. Our strength is reflected in our strong and profitable financial performance, where we recorded compound annual revenue growth of 18% between 2019-2021 and EBITDA growth of 37%.
“As we mark another significant milestone in our journey today, I’m confident that our robust business model, relentless focus on clinical excellence, world-class people and strong commitment to governance will all play key roles in the next chapter of our story.”
The Group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40 to 70 per cent of net income, dependent on the required investment for additional growth plans. In the absence of any attractive investment opportunities that meet the group’s investment criteria and return thresholds, the group will distribute dividends at the upper end of the pay-out ratio range or potentially higher, it said.
The first interim dividend is expected to be paid in the second half of 2023 on the basis of net income for the first half of 2023.
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.
In August 2022, as part of its disciplined approach to capital expenditure and regional expansion, the Burjeel Holdings signed a non-binding memorandum of understanding with the Kingdom of Saudi Arabia’s Ministry of Investment, which will see the group collaborate with KSA institutes and healthcare organisations, and invest up to $1 billion in the kingdom by 2030.
J P Morgan Securities is acting as capital markets advisor to the company and selling shareholder in connection with the offering. - TradeArabia News Service