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Pure Health’s initial public offering on the Abu Dhabi Stock Exchange was oversubscribed and raised AED 3.62 billion ($986 million), driven by strong investor interest.
All tranches of this IPO were oversubscribed, with total demand exceeding AED 265 billion (USD 72 billion). Pure Health, the UAE’s largest healthcare group, said on Tuesday.
The company set the issuance price at 3.26 dirhams per share, with an issuance size of 1.11 billion ordinary shares, equivalent to 10% of its total issued share capital.
Pure Health said the offering documented “significant demand” from investors in the UAE and the region.
The retail portion was oversubscribed 483 times, and the institutional issuance attracted AED 186 billion, with the oversubscription level reaching 54 times.
The company is expected to begin trading on ADX on December 20 under the symbol “PureHealth.” After listing, the company’s market capitalization is expected to reach Dh36.2 billion.
“There is huge demand for our IPO,” said Farhan Malik, founder and managing director of Pure Health.
He said this was “the market’s recognition of our performance, management’s ability to execute and our growth vision.”
In January last year, ADQ signed an agreement to merge its healthcare subsidiary with Pure Health, creating the largest healthcare provider in the UAE.
Pure Health currently has more than 25 hospitals, 100 clinics, diagnostic centers, health insurance solutions, pharmacies, health technology platforms and procurement solutions.
These include facilities operated by Abu Dhabi Health Services Company, commonly known as Seha, the National Health Insurance Corporation (Dammam), the medical office responsible for overseeing Sheikh Khalifa Hospital and medical facilities, and healthcare procurement company Rafed.
Pure Health’s network also includes laboratory operator PureLab, Abu Dhabi Stem Cell Center, One Health – Provide medical solutions – and pharmacy The Life Corner.
The company also recently acquired Circle Health Group, the UK’s largest independent hospital operator, in a deal valued at Dh4.41 billion.
In May, Pure Health completed the acquisition of a Dh1.8 billion equity investment in Ardent Health Services, the fourth largest private acute care hospital operator in the United States.
Pure Health said that when it goes public, the founders will retain 90% of the company’s shares.
First Abu Dhabi Bank serves as the lead manager and lead collecting bank.
Market listing activity in the MENA region has been strong this year, driven by rising investor interest and public mandates aimed at supporting initial public offerings to increase liquidity on local exchanges.
Ernst & Young said in a recent report that there were 29 IPOs in the MENA region in the first nine months of this year, raising a total of $5.8 billion, with all listings taking place in the GCC.
Updated: December 12, 2023 10:05 am
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