PureHealth's IPO last year was one of the most successful ones in the UAE, with subscriptions hitting Dh265 billion. Image Credit: Supplied

Dubai: The UAE’s biggest healthcare operator, PureHealth, could be in for a $800 million windfall, if the plans of its US subsidiary to go for an IPO bear fruit.

PureHealth, listed on ADX, has a 26.05 per cent stake in Ardent Health Services, which it had bought late in 2022 for $500 million, It was part of PureHealth’s systematic push into overseas markets, and which also includes a major investment in the UK.

Now, Ardent Health Services itself is preparing for an IPO and a listing in the US. The aim, according to market analysts, is to raise around $400 million, and with an anticipated market valuation of about $5 billion.

The US hospital operator has already filed with the Securities and Exchange Commission, with the stock float likely to happen even as early as July.

“With the proposed IPO valuation of $5 billion, PureHealth’s stake could potentially escalate to an estimated $1.3 billion, representing a substantial gain,” said an analyst.

Ardent Health is the ‘fourth largest’ privately owned acute care hospital operator in the US. It has 30 hospitals and over 200 care sites in six states currently.

On ADX, PureHealth is trading at Dh3.65, with the highest price point being just over Dh6. It listed on ADX in December, and getting a 70 per cent plus first-day bounce.

Shareholders in Ardent

Apart from PureHealth and its 26.05 per cent, the other major investor in Ardent is Equity Group Investments. At the time of PureHealth’s stake buy in late 2022, Ardent Health’s valuation was $1.9 billion.

PureHealth's international portfolio also includes Circle Health, the largest private healthcare group in the UK, valued at $1.2 billion before debt. More recently, it purchased Sheikh Shakbout Medical City, the largest healthcare complex in the Middle East, valuing the asset at $600 million.

More to follow...