Shares of UAE's private healthcare provider Burjeel Holdings surged in its trading debut Monday, signaling strong demand from local retail and professional investors. The company's shares rose 14.5% to $0.63 (AED 2.3) during its first hours of trading, data on the Abu Dhabi Securities Exchange (ADX) showed.
Burjeel Holding raised gross proceeds of over $300 million (AED 1.1 billion) from its initial public offering (IPO), the company said in a statement Monday.
The final offer price has been set at $0.54 (AED 2) per ordinary share and the offering size is confirmed at 550.7 million shares, equivalent to 11% of Burjeel’s total issued share capital. The 11% of Burjeel Holdings' issued share capital offered in the IPO consisted of 7% of already existing shares amounting to 350.3 million, while the other 4% were yet to be issued by the company, reaching up to 200.3 million shares.
Total gross demand for the offering amounted to over $8.7 billion (AED 32 billion) implying an oversubscription level of 29 times in aggregate, the company said. The group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40% to 70% of net income, dependent on the required investment for additional growth plans.
Burjeel estimated its market capitalization upon listing to be $2.83 billion (AED 10.4 billion), making it one of the largest private healthcare companies on ADX by market capitalization, the company said.
JP Morgan Securities acted as capital markets advisor to the company and selling shareholder in connection with the offering, the statement noted. Dubai Islamic Bank acted as lead manager and First Abu Dhabi Bank PJSC acted as lead receiving bank. International Securities LLC acted as financial advisor and BHM Capital Financial Services PSC acted as listing advisor.
"Burjeel Holdings is an example of how entrepreneurs and companies with a clear vision and commitment to excellence can rise to become leading publicly listed companies. ADX is proud of the role it continues to play in the UAE’s economic diversification efforts, providing companies a platform to reach global investors in a diverse capital market ecosystem,” Hisham Khalid Malak, chairman of ADX said at the opening bell-ringing ceremony.
Founded in 2007 by Indian radiologist and billionaire Shamsheer Vayalil, Burjeel Holdings is a private healthcare services provider in the UAE with a growing presence in the GCC, providing its services across a network of hospitals, medical centers, pharmacies, and other services. It comprises 61 assets, including hospitals, polyclinics, and specialty centers. Burjeel Holdings operates various brands, including Burjeel Hospitals, Medeor Hospitals, LLH Hospitals, Lifecare Hospitals, and Tajmeel.
For the year ended December 31, 2021, Burjeel reported revenues of $925.7 million (AED 3.4 billion) and a net profit of $63.7 million (AED 234.1 million). In the six months ended June 30, 2022, the group had revenues of $517.3 million (AED 1.9 billion) and a net profit of $41.6 million (AED 152.9 million).
