Saudi Arabia's Fakeeh Care Group, one of the largest private hospital groups in the kingdom, has said it planned to proceed with an initial public offering (IPO) through the sale of a 21.47% stake in existing and new shares.
The family-owned business, with hospitals in Jeddah and Riyadh, will offer 30 million new shares and 19.8 million existing shares to investors, it said in a statement.
The Capital Market Authority (CMA) had announced its approval of the company’s application for registering its share capital and the Offering of 49.8 million Ordinary Shares (21.47%) by way of the issuance of 30 million new Ordinary Shares and the sale of 19.8 million current Ordinary Shares (8.53%) by the Company’s Selling Shareholders. The Offering price will be determined at the end of a book building process.
Offer Shares
The Offer Shares will be offered for subscription to individual and institutional investors, including institutional investors outside the US in accordance with Regulation S under the US Securities Act of 1933G, as amended.
The company’s 2,000,000 Treasury Shares, representing 0.86% of the company's post-increase capital, have been allocated to a new Employee Share Programme, which aims to provide incentives to the Group's key employees to attract and retain them in order to achieve the Group’s objectives and strategy.
Alrajhi Bank, Saudi National Bank, Arab National Bank, SAB, Alinma Bank and Bank Aljazira have been appointed as Receiving Agents for retail investors.
Expanding market
Dr Mazen Soliman Fakeeh, President of Fakeeh Care Group, said: “Since 1978, Fakeeh Care Group has been providing its patients with high-quality integrated healthcare that is accessible, personalised, and compassionate. Against the backdrop of Saudi Arabia’s Vision 2030 and an expanding market for private healthcare, we are investing in the growth of Fakeeh Care to bring our experience and expertise to more people across the kingdom.
“We have a clear strategy to reinforce our market leading position in Jeddah and expand our presence in key cities such as Riyadh, Makkah, Madinah and NEOM. Our IPO is an opportunity for investors to participate in Saudi Arabia’s economic success through one of its leading and rapidly growing healthcare brands.”
Fakeeh Care Group is one of Saudi Arabia’s premier integrated providers of high-quality healthcare
FCG offers 4 hospitals (including NEOM Hospital through an operating model) with 900 doctors, 835 beds, 374 examination rooms, 190 ICU beds, and 40 operating theatres.
5 medical centres
FCG boasts 5 medical centres (including NEOM Advanced Medical Centre through an operating model) with 220 doctors, complemented by a range of integrated healthcare services to meet everyday health needs.
FCG’s Fakeeh College for Medical Sciences (FCMS) is a cornerstone of learning and innovation in this field and is based in the Company’s Jeddah hospital. It has 1,800 students enrolled as of September 2023G. FCMS also offers more than 20 residency and fellowship programmes.
For the last three years, DSFH Jeddah has been ranked as Saudi Arabia's best private hospital by Newsweek Magazine, affirming the quality of care and patient experience.
Strong finances
Fakeeh Care Group has a strong financial and growth profile with net revenues growing by a compound annual growth rate (CAGR) of 10.8% during 2020G-2023G to reach SR2.3 billion ($610 million).
EBITDA for FY2023G amounted to SR526 million, increasing by 1.9% year on year. Adjusted EBITDA (excluding the Riyadh hospital) reached SR639 million, up 20.3% year on year, with a 28.3% margin.
Net profit for FY2023G was SR232 million. Adjusted net profit (excluding the Riyadh hospital) for FY 2023G was SR414 million, up 15.3% year on year, with a robust 18.3% profit margin.--TradeArabia News Service
