Saudi Arabia's final IPO for 2024 - AlMoosa Health - rakes in 408.7% retail over-subscription

Dubai: Saudi Arabia's stock market has closed 2024 on a high, going by the response the final offering has garnered.

The retail subscription for AlMoosa Health pulled in 395,986 investors subscribing at SR127 a share - and generating a retail tranche oversubscription of a substantial 408.71%. The total retail demand came to SR1.4 billion.

The retail tranche had 2.66 million shares, or 20% of the total offer size. This is the second IPO from a Saudi healthcare company this year. (The Dr. Soliman Abdel Kader Fakeeh Hospital Co. was the earlier one.)

In the AlMoosa Health offer, individual investors will receive a minimum of 6 shares each, while the remaining will be allocated on a pro-rata basis based on the size of each individual investor’s request compared to the total remaining subscribed shares. (It will mean an average allocation factor of around 3.33%.)

Investor split

· Local investors generated subscriptions of SR168 billion, implying an oversubscription of 99.7 times.

· International investors brought subscriptions of SR5.5 billion, implying oversubscription of 3.3 times.

AlMoosa Health provides its services to about 1 million patients annually. It has 326 physicians in its workforce, and helped generate revenues of SR979 million and a net income of SR98 million in 2023. And for the nine months of this year, revenues were SR870 million and for net income to turn in SR40 million, reflecting a 'strong market presence and superior profitability'.

“The strong demand for our offering is a testament to growing investor confidence in our business - and Saudi Arabia’s healthcare sector," said Malek AlMoosa, Managing Director and CEO at the company.

"We are committed to delivering long term value for our new and existing shareholders. We seek to leverage our 30-year legacy and execute our growth strategy to build new state of the art hospitals and expand our network of clinics to better serve the Eastern province of Saudi Arabia.”