UAE's PureHealth set for bumper Dh3.62 billion IPO, selling 10% at Dh3.26 a share
Middle East's biggest healthcare platform ensures UAE stock market closes '23 on a high
Dubai: In the UAE's next mega IPO, PureHealth is floating 10 per cent of the Abu Dhabi headquartered company, and set the stock offer price at Dh3.26 apiece. In all, 1.11 billion shares will be put up in the IPO.
The subscription opens December 6 and closes December 11 for both tranches. The listing on ADX will be on December 20.
Retail subscribers can access around 4.5 per cent of the offered shares, totalling 50 million shares. (The size of the IPO pushes it straight to the Top 3 floats on ADX this year, with ADNOC Gas coming in at Dh9.1 billion and ADNOC L&S at Dh2.83 billion.)
PureHealth is the UAE's biggest healthcare provider with more than 20 hospitals - and it has a growing portfolio of interests in the US and the UK too. At the same time, PureHealth's portfolio includes the insurer Daman and other health-linked entities.
The Abu Dhabi investment company ADQ is the major shareholder in PureHealth. "Our upcoming IPO offers investors a unique opportunity to be part of an international healthcare platform," said Farhan Malik, Managing Director of PureHealth.
"Our vision is dedicated to transforming the existing healthcare system in the UAE, shifting from a reactive, episodic model to a continuous, proactive ecosystem driven by advanced digital infrastructure."
The IPO announcement from the company will ensure UAE stock markets will close 2023 on a veritable high. In Dubai, the DFM is preparing for the listing of Dubai Taxi, coming off a record subscription run.
Our vision is dedicated to transforming the existing healthcare system in the UAE, shifting from a reactive, episodic model...
A substantial health asset portfolio
The PureHealth holdings include The Medical Office, which oversees the Sheikh Khalifa Hospitals and healthcare facilities; PureLab (which manages and operates the region's largest network of laboratories); and Ardent (the fourth largest privately held acute care hospital operator in the US), and others.
The allotment for professional investors - and interest is already peaking nicely, sources say - adds up to 95.5 per cent of the shares on offer, totaling 1.06 shares.
"That PureHealth IPO is not going for a book building process gives investors the certainty of the valuations that they are going into," said Sameer Lakhani, Managing Director at Global Capital Partners. "With an enviable portfolio and track record in the medical sector - along with rapid inorganic investments already made - the stage is set for investors to respond in a manner that adds to their lucrative portfolios.
"And capitalize on the opportunity the Abu Dhabi government has given with an excellently managed business and one with significant upside potential."
- First Abu Dhabi Bank is the lead receiving bank.
- Wio Bank and Al Maryah Community Bank have also been appointed as receiving banks.
- First Abu Dhabi Bank will be the lead manager for the float.