Fakeeh Healthcare Group, a prominent private hospital group in Saudi Arabia, has announced its 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 percent of its shares on the Saudi Stock Exchange (Tadawul).
The group, which operates hospitals in Jeddah and Riyadh, aims to sell 8.53% of its existing shares and 12.93% of newly issued shares, totaling 21.47% of its capital post-offering. Fakeeh Healthcare Group’s healthcare facilities include 4 hospitals with a total of 835 beds, along with outpatient centers and a college of medical sciences. The group also owns a university hospital in Dubai.
Fakeeh Healthcare Group reported a net profit of 232 million riyals in the fiscal year 2023, 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.
This is the second IPO announcement made by Fakeeh Healthcare Group in recent days, indicating that the company is committed to expanding its operations and reaching new heights in the healthcare industry in Saudi Arabia. The IPO market has been revived following a brief pause during Eid al-Fitr, with other companies like Dr. Sulaiman Al Habib Medical Services Group and Jamjoom Pharmaceutical Factory Company also making public offerings recently on the Saudi Stock Exchange.
