Dubai Investor Sells Al Noor Hospitals Stake, Raises $140m

Dubai private equity firm Ithmar Capital has sold a 7.3 per cent stake in Al Noor Hospitals for 10.30 pounds per share, two sources familiar with the matter said on Thursday, in a deal worth 87.55 million pounds ($142 million).

Ithmar offered 8.5 million shares in the healthcare firm in the first such sell-down since the company was listed in July 2013. The sale leaves Ithmar with a 20 per cent stake, according to Thomson Reuters data.

The sale price was above the mid-point of the original range of 10 pounds to 10.50 pounds, and came at a 4.1 per cent discount to Wednesday’s closing price of 10.74 pounds.

The overnight sale was managed by Deutsche Bank, which was one of the banks that helped arrange the original flotation last year.

One of the largest private healthcare providers in the oil-rich emirate of Abu Dhabi, Al Noor has seen its share price nearly double from its listing price of 5.75 pounds.

Gulf healthcare firms have become popular with investors, given the growing wealth of the region and also the increase in ‘lifestyle diseases’ – for example, five of the six Gulf states are in the global top 10 for prevalence of diabetes.

Al Noor’s other main shareholders are founders Sheikh Mohammed bin Butti Al Hamed and Chief Executive Kassem Alom, who own 28.25 per cent and 10.32 per cent respectively.