Bloomberg/Muhammed Al Muaalemi
The group, which operates hospitals and clinics in Saudi Arabia, the UAE and Bahrain is said to be in preliminary talks with foreign and local banks for listing and potential advisory roles.
Tuesday 30, July 2019 BY KUDAKWASHE MUZORIWA
Saudi Arabia's Sulaiman Al Habib Medical Group is set to launch its initial public offering (IPO) in Riyadh in a deal that could raise $2.5 billion, reported Reuters.
The firm, which abandoned plans to float in 2014 as oil prices dropped and local market conditions deteriorated, could sell as much as a 30 per cent stake in the IPO.
The government is encouraging more family-owned businesses to list on Tadawul in a bid to deepen the Saudi markets under a reform push aimed at reducing the Kingdom’s reliance on oil revenues.
Additionally, Tadawul also relaxed the traditional IPO requirement to list at least 30 per cent of a company.
Fawaz Alhokair Group’s Arabian Centres raised $747 million in a 20 per cent stake listing earlier this year, the first IPO in Saudi Arabia under Rule 144a which allows the sale of securities primarily to qualified institutional buyers in the US.
Similarly, in April Maharah Human Resources also planned to raise more than $200 million in an IPO was open to both institutional and retail investors.