Stock - ADX
It's another successful listing for Abu Dhabi's ADX, with Burjeel Holdings driving the volumes in the first hour of trading itself. Image Credit: WAM

Dubai: Abu Dhabi’s hospital and clinic operator Burjeel Holdings has listed on ADX, and instantly moving up to Dh2.31 from the offer price of Dh2. Volumes were massive, at north of 145 million within the first 45 minutes, as the stock sets down a marker for other privately owned entities consider going public in the UAE.

Burjeel, which floated 11 per cent and saw Dh32 through over-subscriptions, will be among the most influential healthcare stocks on ADX, as market speculation mounts that other healthcare firms in the country are considering going the IPO way.

"Our IPO demonstrates our commitment to helping grow the UAE’s capital markets ecosystem through expanding the economy and private sector, further cementing Abu Dhabi’s role as an attractive destination for investment," said Dr. Shamsheer Vayalil Parambath, founder and Chairman of Burjeel. "That we are here today is testament to the immense passion, perseverance and dedication of our people who, collectively, have built Burjeel Holdings into one of the MENA region’s leading healthcare providers and the largest healthcare company on ADX.”

Will Burjeel’s listing lead more UAE healthcare firms down the IPO road? Image Credit: Supplied

Interestingly, the stock had hit the 20 per cent upside, at Dh2.40, within minutes. On ADX and DFM, a stock swinging 15 per cent up - or down - within a trading session usually triggers the 'circuit-breaker'. "But new listings have 3 days where their stock movements are not governed by the circuit-breaker code," said a top official at Burjeel. "It would kick in only from the fourth day of trading onwards."

Initial market cap
Based on the initial stock price of Dh2 per share, Burjeel Holdings’ market cap at listing was Dh10.4 billion.

"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," said Hisham Khalid Malak, Chairman of ADX. "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."

ADX's current market cap is Dh2.24 trillion.

Will more UAE healthcare firms come calling with IPOs? "Earlier this year, the chief executive of Abu Dhabi conglomerate International Holding Co (IHC) indicated potential plans for a private placement round, followed by an IPO of Pure Health," said Vijay Valecha, Chief Investment Officer at Century Financial.

The success of Burjeel is likely to act as an influence to solidify those plans further.

- Vijay Valecha, Chief Investment Officer at Century Financial

"Investment in the UAE's healthcare sector has picked up since the onset of the pandemic. As a result, companies are consolidating their assets to gain scale, increase market share, and add additional services such as diagnostics, testing and other support resources. This will likely prompt more healthcare companies to go public to diversify their business and increase their market position in the healthcare segment."