Sources reported to “Bloomberg” that the Public Investment Fund (PIF) has selected banks to list the National Unified Procurement Company “Nupco” on the Saudi stock exchange “Tadawul.”
Upcoming IPO
The Kingdom’s sovereign wealth fund has appointed “JP Morgan,” “Morgan Stanley,” and “SNB Capital” to manage the planned public debut of the “largest medical procurement company in the country,” which is entirely owned by the fund.
The fund could raise approximately USD one billion by selling a 30% stake in the company, one source noted to the business news service.
So What
PIF aims to finance “Vision 2030,” the ambitious economic program led by Crown Prince “Mohammed bin Salman.”
The USD 925 billion sovereign wealth fund has listed several of its portfolio companies in recent years and has become an active source of debt.
This comes as Saudi Arabia considers cutting spending on some of its largest development projects, according to “Bloomberg.”
This will add additional pressure on “PIF,” the main entity tasked with executing the multi-trillion-dollar economic diversification plan.
Some Context
The Kingdom became a “busy market” for stock sales in recent years, alongside other Gulf countries.
These oil-rich countries are seeking to raise funds away from the energy sector, encouraging private companies to list in order to develop their capital markets.
Now What
Nupco, established in 2009, aims to enhance healthcare services in Saudi Arabia.
It also aims to improve government spending efficiency on medical supplies and increase the effectiveness of supply chains in the public healthcare sector, according to its website.
It’s worth noting that healthcare is one of the most critical areas of “Vision 2030,” as the state seeks to develop the pharmaceutical industry.
Last month, “Dr. Soliman Abdulkader Fakeeh Hospital Company” raised USD 763 million from its public offering, which was “the largest on Tadawul” so far this year.
