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). This includes 30 million new shares and 19.8 million existing shares.
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.
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.
Fakeeh Healthcare Group’s IPO announcement 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