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Stake in Abu Dhabi Healthcare Provider Burger Holdings soared 20 As the company debuted on the Abu Dhabi Stock Exchange, it was 1% higher than its listing price on Monday.
The company, which started trading under the ticker symbol “BUJEEL,” jumped to AED2.39 in early ADX trade, giving it a market capitalization of more than AED12.44 billion ($3.4 billion).
The company sells more than 550.7 million shares, 2 dirhams below the issue price, raised more than 1.1 billion dirhams from the sale of an 11% stake in the company’s IPO.
The IPO attracted strong demand from investors in the UAE and the region, with more than 29 times over-subscription. The total demand exceeds AED 32 billion.
Following the listing today, VPS Healthcare Holdings will continue to hold a 70% stake in the company.
Founded in 2007 by Dr. Shamsheer Vayalil, Burjeel Holdings has a network of approximately 61 properties, including hospitals and medical centers, as well as pharmacies and other related services across the UAE and Oman.
The company plans to settle in Saudi Arabia, Plans to invest up to $1 billion in the Arab world’s largest economy through joint ventures and public-private partnerships.
Unlike U.S. and European capital markets, which fell into a bear market, the UAE has gone through a series of IPOs, with several government-owned companies going public.
The Arab world’s second-largest stock market, ADX, recorded a surge in liquidity and foreign investment in 2021 on the back of new listings, making it one of the world’s best-performing equity indicators in 2021.
The IPO pushed ADX’s market value to AED2.24 trillion as of Friday’s close.
Companies listed on the Abu Dhabi market this year include Borouge, a joint venture between Adnoc and Austrian chemical producer Borealis, and Abu Dhabi Ports Group, an operator of industrial cities and free zones in the UAE.
Nine companies listed on the exchange last year, including Adnoc Drilling, Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, Alpha Dhabi, a real estate and construction company owned by IHC, and Yahsat, a satellite operator owned by Mubadala Investment Company.
Last year, Abu Dhabi also announced AED5 billion initial public offering Fund to help encourage and support private company listed in local stock market.
Investments in the UAE healthcare sector have increased since the onset of the Covid-19 pandemic. Companies are consolidating their assets to increase scale and add additional services such as diagnostics, testing and other support resources to better serve patients and increase their market share.
Dubai-listed investment firm Amanat Holdings bought Cambridge Medical and Rehabilitation Centre for $232 million last year in one of the largest healthcare deals in the region.
In January, Abu Dhabi Holding Company ADQ Consolidates Its Healthcare Subsidiary Partnering with Pure Health Medical Supplies of Alpha Dhabi to streamline its product portfolio to create the largest healthcare provider in the UAE.
Updated: October 10, 2022, 6:28 am
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