Dr. Soliman Abdul Qader Fakeeh Hospital Company (Fakeeh Healthcare Group), one of the largest private hospital groups in the Kingdom of Saudi Arabia, announced in a statement on Wednesday its intention to proceed with the offering of a share of its current shares in addition to offering newly issued shares with a total of 21.47 percent for the initial public offering. On the Saudi Stock Exchange (Tadawul).
The family-owned company, which has hospitals in Jeddah and Riyadh, reported its intention to offer 30 million new shares, in addition to 19.8 million shares of existing shares.
The selling shares represent 8.53% and the new shares represent 12.93% of the issued capital upon completion of the offering, which equals 21.47% of the issued capital after the issuance of the new shares and the capital increase.
The group’s healthcare facilities and assets include 835 beds in 4 hospitals: Dr. Soliman Fakeeh Hospital in Jeddah, Dr. Soliman Fakeeh Hospital in Riyadh, Dr. Soliman Fakeeh Hospital, which will be inaugurated in Medina soon, and NEOM Hospital through an operating contract). Including about 900 doctors.
The group has within its facilities 5 outpatient health care centers, including the NEOM Center for Advanced Care through an operational contract, which employs 220 doctors, in addition to many other integrated health care services. The group also owns a College of Medical Sciences, where 1,800 students study.
Also, the group has a university hospital in Dubai.
According to the bulletin, the group achieved a net profit of 232 million riyals, while the adjusted net profit (excluding Riyadh Hospital) amounted to 414 million riyals during the fiscal year 2023, an increase of 15.3% on an annual basis, with a profit margin of 18.3%.
The company intends to use the net proceeds from the offering, in addition to its other financial flows, which include cash and loans, for the purpose of financing the group’s growth strategy and the general purposes of the company, after deducting the offering expenses amounting to 75 million riyals.
The intention to offer by Fakih Group is the second to be announced in the Kingdom, on Wednesday, amid the recovery of the IPO market after a short pause earlier this month with the suspension of activity in conjunction with the Eid al-Fitr holiday.
Miyahana, a Saudi company for water collection and wastewater treatment management services, announced on Wednesday its intention to sell a share of its shares in an initial public offering on the Riyadh Stock Exchange.
The Saudi Stock Exchange has witnessed an increase in health care sector offerings in the past three years, including Dr. Sulaiman Al Habib Medical Services Group, Al Nahdi Medical Company, and Jamjoom Pharmaceutical Factory Company (Jamjoom Pharma). (agencies)