Hospital Operator Burjeel Sets Low IPO Price, Raises $300M

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DUBAI (Reuters) – Abu Dhabi-based hospital operator Burjeel Holdings said on Wednesday it expects gross proceeds of around 1.1 billion dirhams ($299.51 million) from its initial public offering , after setting the stock price at the lower end of a price range.

Burjeel set its final offer price at 2 dirhams per share after saying last week that the range would be between 2 dirhams and 2.45 dirhams.

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« The offer price has been set at AED 2.00 per ordinary share, » Burjeel said, and confirmed that he would sell 11% of the company’s issued share capital, or more than 550.7 million. company shares.

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Gross demand for the IPO was over 32 billion dirhams, « implying a 29 times oversubscription level », Burjeel said, adding that the company is expected to have a market capitalization of around 10.4 billion. dirhams when it is listed, scheduled for Monday.

« The offering price reflects our desire to prioritize a supportive performance post-listing in the secondary market and we are delighted that Burjeel Holdings is one of the largest private healthcare companies on ADX a once listed, » said Shamsheer Vayalil Parambath, Founder and Chairman of Burjeel.

VPS Healthcare Holdings will continue to hold a 70% majority stake in Burjeel after listing, Burjeel said.

In September, the International Holding Company of Abu Dhabi, chaired by the national security adviser of the United Arab Emirates, bought a 15% stake in the company.

Dubai Islamic Bank was the lead manager and first receiving bank of First Abu Dhabi Bank. International Securities was the financial adviser and BHM Capital Financial Services was the listing adviser, Burjeel said. JPMorgan Securities acted as the company’s capital markets advisor and selling shareholder. ($1 = 3.6727 UAE dirhams) (Reporting by Yousef Saba edited by Shri Navaratnam)