Two of Saudi Arabia’s largest private hospital groups will seek initial public offers of their shares on the kingdom’s bourse next year, banking sources aware of the matter said, amid a surge in demand for healthcare services in the region.
Sulaiman Al-Habib Medical Group (HMG), one of the largest private providers of healthcare in the Gulf Arab region, has appointed the investment banking arm of Banque Saudi Fransi to assist with the sale, two Saudi banking sources said, speaking on condition of anonymity as the matter has not been made public.
The IPO is likely to be the largest for an established private company in Saudi Arabia since investment firm Kingdom Holding in 2007, one of the sources said.
Almana General Hospitals (AGH), focused on the kingdom’s Eastern Province, also wants a listing on the local bourse and has appointed GIB Capital, the investment banking arm of Gulf International Bank, to help with the process, according to the sources.
AGH made net income of between 100 million and 150m riyals ($26.7m to $40m) in 2012 and the business could be valued at 13 times that figure, one source said.
HMG did not respond to emails and calls seeking comment. An AGH spokesman was not available for comment.
Saudi healthcare spending set to top $26bn this yearHealthcare spending in Saudi Arabia is expected to grow by 10.3 percent to SR98 billion ($26.1bn) this year, compared with SR88.9bn in 2012. The Saudi ... Economy
Saudi Arabia to send three field hospitals to Egypt amid unrestSaudi King Abdullah ordered on Saturday the dispatch of three fully-equipped field hospitals to Egypt, a day after backing Cairo in its deadly ... Middle East
U.N. to unveil maternal healthcare drive, targets Muslim countriesThe United Nations Population Fund (UNFPA), will launch two new initiatives to improve maternal health in some of the most-hard-to-reach areas around ... Features