The Abraaj Group, a leading investor operating in global growth markets, has raised EGP360 million ($40.44 million) in capital for its partner company Cleopatra Hospital Company through an initial public offering (IPO) on the Egyptian Exchange (EGX).

Even after the IPO, 80 per cent of the outstanding shares of the company continue to be retained by funds advised by Abraaj.

The listing of the company marks the second IPO of 2016 on the Egyptian Exchange. The IPO was more than 28 times oversubscribed on the retail tranche offering and more than six times oversubscribed on the institutional tranche, with over 65 per cent of the orders coming from international investors, said a statement.

The IPO price of EGP9 per share will give the company a market capitalisation of EGP1.44 billion at the opening bell today. The Abraaj Group's funds will use the proceeds of the IPO to subscribe to an exclusive capital increase to fuel future growth.

Cleopatra Hospital Company is the largest private hospital group in Egypt both by number of hospital beds and operational hospitals. The Abraaj Group invested in the company through its funds in 2014, in partnership with leading global development finance institutions, the European Bank for Reconstruction and Development (EBRD), Deutsche Investitions-und Entwickungsgesellschaft (DEG), and the Société de Promotion et de Participation pour la Coopération Economique  (Proparco).

Ahmed Badreldin, partner at The Abraaj Group and vice chairman of Cleopatra Hospital Company, said: “This IPO reflects the renewed, strong investor confidence in the capital markets and healthcare sector in Egypt. During the first phase of our investment in the company, we focused on creating scale by acquiring hospitals in attractive catchment areas of Cairo. We view this IPO as the beginning of the second phase of the company’s expansion, both in terms of reach within Cairo and across other governorates, and in scale through the addition of more hospital beds and rollout of ambulatory clinics to provide quality healthcare services across Egypt.”

Walid Bakr, managing director at The Abraaj Group, added: “Abraaj and Cleopatra Hospital Company have a shared vision of offering accessible, affordable and quality patient care. As the founding investor and long-term partner of the company, we have worked with management to enhance operating efficiencies through centralised initiatives as well as embarking on projects for both hospital infrastructure and medical technology upgrades. The success of the IPO validates the company’s strong performance to date and we look forward to working closely with the management team to deliver on future expansion plans.”

Dr Ahmed Ezzeldin, chief executive officer of Cleopatra Hospital Company, said: “Abraaj’s investment has consolidated our standing as the leading private hospital group in Egypt and helped us redefine the standard for high-quality healthcare delivery in the country. The listing on EGX provides us with an exciting new platform for the next phase of our growth. We look forward to widening our footprint both in and outside Cairo and maintaining our focus on delivering high quality and accessible care.”  - TradeArabia News Service