UAE healthcare provider Burjeel seeking to raise $750m from IPO

UAE’s Healthcare provider Burjeel Holdings is seeking to raise at least $750m from an initial public offering (IPO) in Abu Dhabi this year, according to people familiar with the matter.

Once listed, the UAE-based firm, is considering a dividend payout ratio of 40 per cent to 70 per cent of net income from 2023 depending on its investment requirements at the time, according to a presentation for potential investors ahead of the offering that could come as soon as the third quarter.

Burjeel’s owner VPS Healthcare has been courting potential investors including sovereign and pension funds to drum up support for the deal. Talks with more formal group and one-on-one meetings were expected to follow, Bloomberg has reported.

A representative from Burjeel declined to comment.

The region has been a bright spot for IPOs during the first half, and the pipeline of offerings remains strong. The last two listings in Dubai were supermarket operator Union Coop and property firm Tecom Group. Just a day before, UAE-based Al Ansari Exchange also announced that they are considering an IPO early next year.

Read: UAE Exchange firm Al Ansari considers Dubai IPO

Burjeel, which operates 39 hospitals and medical centers across the UAE and Oman, expects group revenue to grow organically in the mid to high teens this year, according to the presentation that was seen by Bloomberg. The company is planning an additional cumulative investment of about Dhs600m ($163.4 million) until 2025 to support international expansion, it said.

Recently, the company also announced its financial results for the Full Year (FY) 2021. For the 12-month period ended December 31 2021, Burjeel reported record financial results reflecting the strength of its diversified portfolio of healthcare assets, specialised services and its strong, connected growth platform.

Read: Burjeel Holdings records revenue of Dhs3.35bn for FY2021