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Burjeel Holdings, one of the largest private healthcare providers in the UAE and Oman, today announced its intention to list 11% of its share capital on the main market of the Abu Dhabi Stock Exchange (ADX).
The company’s planned listing will provide investors with access to one of the MENA region’s leading private healthcare providers with a vision to ensure quality healthcare and clinical excellence across the region, the company said.
The subscription period for the listing will begin on Friday, September 30 and end on Tuesday, October 4. The company plans to list on the ADX on October 10.
The company intends to issue 200,397,665 new shares and VPS Healthcare Holdings (the selling shareholder) intends to issue no more than 350,331,555 existing shares of the company’s issued share capital. If all shares are subscribed and allocated and the offer size is not increased, the total offer size is currently expected to be 11% of the company’s enlarged issued share capital, it said.
Of the Offer Shares, 10% will be allocated under the first tranche (as defined in the prospectus for the IPO issue) and 90% will be allocated under the second tranche (as defined in the prospectus).
Burjeel Holdings provides a comprehensive healthcare ecosystem to patients across the socioeconomic spectrum through its key market leading brands Burjeel, Medeor, LLH, Lifecare and Tajmeel. Among its brands, it operates a portfolio of 16 hospitals, 23 medical centres (including polyclinics and specialist medical centres offering dental, cosmetic, home care services, a dedicated orthopaedic centre and in vitro fertilisation centre) and 15 Pharmacy and a wholly owned network of 7 entities related services such as central procurement (eg GPO), revenue cycle management, central diagnostics, central warehousing and patient valet parking.
In 2021, the Group treated 105,000 inpatients and 4.8 million outpatients across its network, which includes integrated service offerings in oncology, women’s and children, orthopaedics and spine, cardiac sciences, and bariatric medicine, accounting for approximately 100,000 inpatient market share as of 2021. 17% and about 12% outpatient market share on June 30, 2022.
For the year ended December 31, 2021 and the six months ended June 30, 2022, the Group’s revenue was AED3,351 million and AED1,898.4 million; EBITDA was AED779.1 million and AED414.2 million, respectively AED 234.1 million and AED 152.9 million in net profit respectively.
Commenting on the planned listing, Burjeel Holdings chairman Dr Shamsheer Vayalil Parambath said:
“I am delighted to announce our intention to list on ADX, providing investors with a unique opportunity to participate in the growth story of Abu Dhabi, UAE and MENA regions. Over the past 15 years, we have focused on increasing access to Our growth has been driven by our long-term vision for quality healthcare and clinical excellence, and today we are one of the UAE’s leading private healthcare delivery platforms, with unparalleled patient services and a diverse portfolio of 16 hospitals, including our own in the UAE and Oman’s flagship facility, Burjeel Medical City and 23 medical centers.
“Today’s announcement builds on our partnership with IHC, which will have a transformative impact on Burjeel Holdings through the addition of new capabilities, capital and access to new markets. As healthcare spending continues to increase across the region, Burjeel Holdings Ji Holdings has benefited from a targeted multi-brand strategy focused on delivering complex, specialized medicines to all socioeconomic groups. Our strength is reflected in our strong and profitable financial performance, which we have seen in 2019 to 2021 It achieved a compound annual revenue growth of 18% and an EBITDA growth of 37% during the year.
“As we mark another major milestone in our journey today, I believe our strong business model, relentless focus on clinical excellence, world-class talent and unwavering commitment to governance will all be part of the next chapter in our story play a key role.”
The Group intends to pay cash dividends from 2023, with an expected payout ratio of 40% to 70% of net income, depending on the investments required for additional growth plans. In the absence of any attractive investment opportunities that meet the group’s investment criteria and return thresholds, the group will distribute dividends at the upper end of the payout ratio range or possibly higher, it said.
The first interim dividend is expected to be paid in the second half of 2023 based on the net profit in the first half of 2023.
In September 2022, Abu Dhabi-based diversified conglomerate International Holdings Company (IHC) announced the acquisition of a 15% stake in Burjeel Holdings to expand and diversify its local and regional healthcare investments.
In August 2022, as part of its rigorous approach to capital expenditure and regional expansion, Burjeel Holdings signed a non-binding memorandum of understanding with the Kingdom of Saudi Arabia’s Ministry of Investment, which will see the group collaborate with KSA Institutional and Healthcare Organizing cooperation to invest up to $1 billion in the country by 2030.
JPMorgan Securities acted as capital markets advisor to the company and as the selling shareholder in connection with the offering. – arab trade news agency
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