In recent news, the Fakeeh Healthcare Group, a prominent private hospital group in Saudi Arabia, has announced plans to offer a portion of its existing shares as well as newly issued shares in an initial public offering (IPO). The company intends to offer a total of 21.47% of its shares on the Saudi Stock Exchange (Tadawul), which includes 30 million new shares and 19.8 million existing shares.
Fakeeh Healthcare Group operates hospitals in Jeddah and Riyadh, with a total of 4 hospitals and 835 beds. The group also owns outpatient centers and a college of medical sciences. In addition to this, the group owns a university hospital in Dubai.
In the fiscal year 2023, the company reported a net profit of 232 million riyals, with an adjusted net profit (excluding Riyadh Hospital) of 414 million riyals, representing a 15.3% year-on-year increase. The proceeds from the IPO, along with other financial resources, will be used to finance the group’s growth strategy and general purposes after deducting offering expenses of 75 million riyals.
The IPO announcement by Fakeeh Healthcare Group is the second in the Kingdom of Saudi Arabia in recent days, indicating a revival of the IPO market following a brief pause during Eid al-Fitr. The Saudi Stock Exchange has seen an increase in healthcare sector offerings in recent years, with companies like Dr. Sulaiman Al Habib Medical Services Group, Al Nahdi Medical Company, and Jamjoom Pharmaceutical Factory Company making public offerings.
