Shares of Dr. Soliman Abdulkader Fakeeh Hospital Company (Fakeeh Care Group) (4017) performed well in their debut trading session on the Saudi Stock Exchange “Tadawul.”
The stock surged by about 10% during the morning trades.
Largest IPO
The listing followed “Fakeeh” offering 49.8 million shares, representing 21.47% of the company’s total shares in the main market “TASI.”
The IPO raised approximately 2.9 billion riyals ($764 million), making it the “largest public offering this year” in the Kingdom so far.
The individual subscription coverage rate reached 14.5 times, while institutional coverage hit 119 times.
This led to pricing the IPO at the upper limit of the price range, 57.5 riyals per share.
So What
This “significant offering” turned two major shareholders of “Fakeeh Care Group” into billionaires.
The company has become the largest to list on Tadawul this year.
The total wealth of brothers Mazen and Ammar Fakeeh, sons of the doctor who founded the hospital, reached at least $2.5 billion following the sale.
Their sister Manal’s wealth was about $600 million, according to the Bloomberg Billionaires Index.
Some Context
The healthcare industry is a major pillar in Crown Prince Mohammed bin Salman’s “Vision 2030,” valued at $1 trillion.
The “ambitious plan” aims to increase the population, and raise life expectancy.
In 2021, the Kingdom launched a program to make the sector more efficient.
Last year, the Public Investment Fund established the pharmaceutical investment company “Lifera” to attract pharmaceutical and biotechnology companies.
Notably, recent IPOs in the healthcare sector have generally performed well.
They have generated at least $16.7 billion in wealth for their major shareholders, based on their stake values.
With the sale of “Fakeeh Care Group” shares, the healthcare industry now accounts for about 7% of the market capitalization of Saudi stocks, excluding the global energy giant “Aramco.”
Now What
The healthcare group also plans to double its bed capacity by 2028.
It is expanding into medical tourism for visitors to the holy cities, offering treatments for pilgrims.
This includes packages covering everything from insurance to flight bookings and translators.
