Saudi Arabia’s Almoosa Health sets IPO price range, plans to raise SAR1.7bn

Saudi Arabia’s Almoosa Health said on Wednesday that it plans to raise as much as $450m (SAR1.68bn) by selling a 30 per cent stake in the healthcare firm via an initial public offering (IPO) on the local bourse.

Almoosa is offering 13.3 million shares to investors – equivalent to 30 per cent of the company’s paid-up capital. The indicative share price of SAR123 and SAR127 per share implies a market valuation of around SAR5.6bn at the top of the range.

The hospital operator said the offering price will be determined at the end of the book-building process. It is offering the shares in two tranches — institutional investors and retail investors— between December 5 and December 24, with final allocations due on December 29.

The Company for Cooperative Insurance (Tawuniya) and Alfozan Holding have agreed to subscribe to 4.1 per cent and 2.5 per cent of the offering, respectively, as anchor investors.

Founded in 1996, Almoosa is expanding its healthcare network with the addition of 700 beds, ultimately reaching a total of 1,430 beds across four hospitals.

على مدى ثلاثة عقود من التميز، رسخت الموسى الصحية مكانتها كإحدى المؤسسات الرائدة في تقديم خدمات الرعاية الصحية في المنطقة الشرقية

يُعد الاكتتاب العام الأولي خطوة استراتيجية ومحطة فارقة في رحلتنا نحو التميز

انضموا إلينا في تحقيق رسالتنا لتغيير مشهد الرعاية الصحية وإحداث تأثير… pic.twitter.com/he7OQLn1Xy

— الموسى الصحية (@almoosahospital) December 2, 2024

The healthcare group intends to open Almoosa Specialist Hospital in Al-Hofuf by 2027, featuring 300 beds, 200 clinics, and a pharmacy, and another specialist hospital facility in Al-Khobar in 2028, with 400 beds, 300 clinics, and a pharmacy.

Furthermore, Almoosa also intends to establish five primary care centres in the Eastern Province between 2025 and 2027, strategically located in Al Ahsa, Al Khobar, and Dammam.

The hospital operator’s revenues reached SAR979m in 2023 and SAR870m in the first nine months of 2024. Between 2021 and 2023, its net income grew at a CAGR of 25.4 per cent to reach SAR 98.1m in 2023 and SAR40m in the nine months ending September 30.

Saudi Arabia has seen a string of listings in the sector, including Avalon Pharma, Fakeeh Care Group and Dr. Sulaiman Al Habib Medical Group. Almoosa is working with EFG Hermes, Saudi Fransi Capital and Moelis & Co. on the deal.

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