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Qualified investors who want to snap up shares in Al Modawat Specialized Medical will be able to place their orders starting today, according to a Tadawul regulatory filing. The healthcare player is set to float 475k shares on Tadawul’s parallel market Nomu — good for a 20% stake in the company.
The price range: Bankers will be taking orders within the price range of SAR 93 and SAR 111 a piece until Monday, 5 February, before deciding on the final price for the offering.
Individual investors can place orders for a minimum of 10 shares and a maximum of 118.5k. The final share allocation will be announced on Sunday, 11 February, and refunds of excess subscription fees, if any, will be made on 13 February.
Use of proceeds:The majority of the potential proceeds (94%) are earmarked to support the company’s working capital needs, while the remaining will be used to purchase an MRI scanner, according to a prospectus (pdf)
Ownership structure + lock-up period: Majority shareholder Qiam Holding holds a 75.5% stake, which will be reduced to 60.4% post transaction. Qiam is the only substantial shareholder that will have to abide by a 12-month lock-up period starting from the first day of trading.
KPIs for 1H 2023: Al Modawat’s bottom line increased 3x y-o-y to SAR 10.9 mn in 1H 2023, while its top line rose 47% to SAR 37.2 mn in the same period, according to the prospectus. The healthcare provider recorded a bottom line of SAR 62.6 mn in 2022 and SAR 51.5 mn in 2021.
How it makes money: Hospital accommodation services contributed 76% of the total revenues int he first half of last year, followed by out-patient clinics (19%), and pharmacy revenues (4.5%).
ADVISORS- Yaqeen Capital will be quarterbacking the transaction as lead manager and financial advisor, while Talal Abu Ghazaleh & Co. (TAGI) will be acting as auditor, according to the prospectus.
