Sign in
Dr Soliman Abdulkader Fakeeh Hospital (Fakeeh Care Group) plans to sell a 21.5% stake on Tadawul’s main market through an offering of both new and existing shares, according to a prospectus (pdf). The IPO by the private healthcare provider comes as listings in Saudi pick up pace — and as a growing number of healthcare companies pull the trigger on IPOs. It got clearance from the Capital Market Authority (CMA) to go public in late March.
What’s Fakeeh Care? Founded in Jeddah in 1978 by Dr Soliman Fakeeh, Fakeeh Care is a leading private healthcare provider in the Kingdom with four hospitals and a total of 835 beds, five medical centers, and one medical college. It treated 1.5 mn patients last year, up from 1.2 mn in 2020.
What they said: “We’re in the right industry at the right time,” Fakeeh Care President Dr. Mazen Soliman Fakeeh told Bloomberg. “Healthcare is very promising in Saudi Arabia, especially with Vision 2030 and the plans to privatize and corporatize and expand on public and private insurance,” he said of Crown Prince and Prime Minister Mohammed bin }}’s diversification plan.
Use of proceeds: The company plans to use the proceeds — after deducting SAR 75 mn in offering fees — to “support the company’s growth strategy and general corporate purposes,” the prospectus said, without providing further details.
Ironing out the details: The hospital group plans to offer 30 mn new shares and 19.8 mn existing shares held by the Fakeeh family. Upon completion of the offering, current shareholders (members of the Fakeeh family) will collectively own a 77% stake in the company. It did not disclose details on how much it plans to raise from the offering.
The timeline: Bankers will start taking orders from institutional investors starting Thursday, 2 May to Wednesday, 8 May, while orders from retail investors will run from Tuesday, 21 May to Wednesday, 22 May. The offering price will be determined at the end of the bookbuilding process.
INDUSTRY BACKGROUND- Healthcare operators have been lining up to IPO: Al Hammadi (2015) and Saudi German Healthcare (2016) led the way, with Dr Sulaiman Al Habib, pharma group Al Nahdi Medical, and drugmakers Jamjoom Pharma and Avalon Pharma all having followed suit. Aster DM Healthcare, meanwhile, is said to be looking to spin off its GCC unit with a dual listing on Tadawul and the Dubai Financial Market.
FAKEEH’S BOTTOM LINE
A snapshot of the latest results: The healthcare group’s adjusted net income was up 15.3% y-o-y to SAR 414 mn in 2023, while revenues grew at a CAGR of 10.8% between 2020 to 2023 to SAR 2.3 bn, the prospectus shows.
And plans for growth: Fakeeh plans to have seven hospitals with 1.6k beds and nine medical centers by 2028. It said it has secured multiple plots in Jeddah and Riyadh and signed lease agreements in Makkah under its growth plan.
Background: Fakeeh Care had been mulling a share sale since last year.
Advisors: Our friends at HSBC are acting as sole financial adviser. HSBC is joint bookrunner together with our friends at EFG Hermes as well as ANB Capital. Moelis is advising the selling shareholders, while AlRajhi Bank, Saudi National Bank, Arab National Bank, SAB, Alinma Bank and Bank Aljazira are serving as receiving banks.
