Almoosa Health’s Tadawul IPO retail tranche was 5.1x oversubscribed

Almoosa Health’s retail offering was 5.1x oversubscribed, logging orders worth SAR 1.4 bn, according to a press release (pdf). The hospital operator allocated 20% (2.7 mn shares) of its offering to the retail tranche, which saw 396k local and international investors book shares at SAR 127 apiece. Retail subscribers will be allocated a minimum of six shares apiece, with rump shares to be distributed on a pro-rata basis, the statement said. Almoosa priced its offering at the top of the guidance range at SAR 127 after its institutional tranche was 103x oversubscribed.

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REFRESHER- The Al Ahsa based hospital operator is taking a 30% stake to market in a combined offering that’s shaping up to be Saudi’s second-largest IPO of the year, following Fakeeh Care’s USD 764 mn Tadawul debut. Almoosa secured anchor investments for 22% of the offering, with another 33% earmarked for public funds.

Use of proceeds: Net proceeds — after deducting an estimated SAR 52.4 mn in offering-related expenses — will be distributed to selling shareholders Abdulaziz bin Abdullah Almoosa Investment and Abdulaziz Abdullah Almoosa Charity. The remainder is earmarked for financing the company’s growth plans and repaying outstanding debt.

ADVISORS- Our friends at EFG Hermes are underwriters and bookrunners on the transaction, alongside Banque Saudi Fransi Capital, which is also acting as lead manager and financial advisor. PwC is acting as financial due diligence advisor as well as market consultant, while Latham and Watkins is providing counsel. Moelis is advising selling shareholders.