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Almoosa Health priced its Tadawul IPO at SAR 127 apiece — the top of the range it was guiding on — after its institutional offering was 103x oversubscribed, drawing SAR 173 bn in orders, according to a press release (pdf). The final pricing will see the firm lock in nearly SAR 1.7 bn in proceeds, giving it a market cap of SAR 5.6 bn at listing. The story also got ink from Bloomberg.
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What’s next? Some 20% of the shares on offer will be open to retail investors for a two-day period starting Monday 23, December. They will be able to book between 10k-250k shares each. The final allocation of shares will be announced no later than Sunday, 29 December.
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 debut. Almoosa secured anchor investments for 22% of the offering, while 33% of it is earmarked for public funds.
Use of proceeds: Part of the proceeds — after deducting an estimated SAR 52.4 mn in offering expenses — will be distributed to the selling shareholders (Abdulaziz bin Abdullah Almoosa Investment and Abdulaziz Abdullah Almoosa Charity) while the remaining will fuel the company’s growth plans and repay outstanding debt.
Latest earnings: Almoosa logged SAR 13.7 mn in net income in 1Q 2024, dipping 47.4% y-o-y, despite a 19.1% uptick in revenues to SAR 277.2 mn on the back of a new tower opening in Al Ahsa, according to its prospectus (pdf).
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.
