Middle East Healthcare Company raises $3.2bn from IPO

Middle East Healthcare Company has raised SAR 12bn ($3.2bn) from an initial public offering, selling 27.61 million shares representing 30 per cent of its share capital.

The company, which owns and operates the regional Saudi German Hospitals brand, ran the IPO on the Tadawul stock exchange in March. In a statement, Samba Capital and Investment Management Company said the coverage ratio of institutional investors was 593.7 per cent while the coverage of individual investors was 274.2 per cent.

The chairman of MEAHCO, Sobhi A Batterjee, said: “We are very pleased with the outcome of the IPO. We believe that the high participation rates, particularly during the current market conditions reflect the confidence of citizens and investment community in the investment value and growth potential of the company.

“The IPO of MEAHCO is an important milestone in the company’s successful journey. We thank all the investors for their participation in the IPO and for the confidence they have shown. We welcome them as our shareholders and partners and we are committed to operating as a responsible publicly listed company, and continue to offer quality medical care to our patients and create value for our shareholders.

“MEAHCO is operating in a sector with a bright outlook, and has exciting growth prospects, with a number of expansion projects already underway.”

The first Saudi German Hospital was opened in Jeddah in 1988, and the brand has since spread throughout Saudi Arabia, as well as the United Arab Emirates, Egypt and Yemen. MEAHCO is currently constructing a new hospital in Hail, and plans to develop a new facility in Damman by 2018.