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UAE healthcare provider raises $300 million through oversubscription

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Abu Dhabi Healthcare Providers Burger Holdings Raised more than AED 1.1 billion ($300 million) by selling an 11 percent stake in the company’s initial public offering.

The IPO attracted strong demand from investors in the UAE and the region, with more than 29 times over-subscription. The company said on Wednesday that total demand exceeded 32 billion dirhams ($8.7 billion).

The company sells more than 550.7 million shares were issued at the low end of Dh2. Burjeel is expected to have a market capitalisation of around AED10.4 billion upon listing, making it one of the largest private healthcare companies by market capitalisation on the Abu Dhabi Stock Exchange.

Its shares will begin trading on October 10 under the symbol “BUJEEL.” VPS Healthcare Holdings will continue to hold a 70% stake in the company after the listing.

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.

“The strong demand for the IPO…reflects the high-quality investment opportunities offered by Burjeel Holdings, built on our clear clinical vision and our strong growth trajectory in the MENA region,” said Dr. Vayalil.

“The offer reflects our desire to prioritize supportive aftermarket performance after launch.”

September 19, Abu Dhabi International holding companythe largest company in the UAE by market capitalization, purchase 15% stake in Burjeel.

Burjeel’s revenue in fiscal 2021 is around AED3.4 billion, growing at a CAGR of 18% from 2019 to 2021.

The company plans to pay a cash dividend from 2023, with an expected payout ratio of 40% to 70% of net income, depending on the investments required for additional growth plans.

It said it would distribute dividends at the upper end of the payout ratio range or possibly higher in the absence of attractive investment opportunities.

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.

Dubai Islamic Bank acted as lead manager in the IPO, First Abu Dhabi Bank acted as lead recipient bank and International Securities acted as financial advisor.

BHM Capital Financial Services acted as listing advisor and JPMorgan Chase acted as capital markets advisor to the company and selling shareholders.

Updated: 10/5/2022 4:41AM



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