Sign in
Almoosa Health Company is guiding on a price range of SAR 123-127 per share for its offering of a 30% stake on Tadawul’s main market, the firm said in a statement (pdf). The pricing could see Almoosa raise up to SAR 1.7 bn (USD 450 mn) in proceeds and would give it a market cap of SAR 5.6 bn (USD 1.5 bn) at listing.
The offering is shaping up to be Saudi’s second-largest IPO of the year, following Fakeeh Care’s mid-year offering that raised some USD 764 mn, Reuters said.
(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)
Part of the proceeds — after deducting an estimated SAR 52.4 mn in offering expenses — will be distributed to the selling shareholders, while the remaining will fuel the company’s growth plans and to repay outstanding debt.
Timeline: Institutional bookbuilding kicked off yesterday and will run until Tuesday, 10 December. Institutional investors can subscribe to 100% of the offering, booking a minimum of 100k shares and up to 2.2 mn shares each. Retail investors will be allocated up to 20% of the offering subject to demand, and can book between 10 and 250k shares each during a two-day subscription period beginning on Monday, 23 December. Final share allocations will be announced no later than Sunday, 29 December.
Pre-set allocations: Of the 13.3 mn shares on offer, 21% will be newly issued shares to be added in the form of a capital increase. Tawuniya and Al Fozan Holding will be allocated 22% of the offering as anchor investors, and 30% of the offering will be allocated to public funds.
Post-IPO structure + lockup: The hospital operator’s substantial shareholders, Abdulaziz bin Abdullah Almoosa Investment Co. (95%) and Abdulaziz Abdullah Almoosa Charity Co. (5%), will see their combined ownership diluted from 100% to 69.7%. They will not be able to sell down their positions for a six-month period starting from the first day of trading.
ADVISORS- Our friends at EFG Hermes are underwriters and bookrunners on the transaction, alongside Banque Saudi Fransi Capital, which is also acting as the lead manager and financial advisor. PwC is financial due diligence advisor as well as market consultant, while Latham and Watkins is providing counsel. Moelis is advising the selling shareholders.
