Hospital operator Burjeel sets IPO price at low end, to raise $300 mln

DUBAI, Oct 5 (Reuters) – Abu Dhabi-based hospital operator Burjeel Holdings mentioned on Wednesday it anticipated gross proceeds of about 1.1 billion dirhams ($299.51 million) from its preliminary public providing, after it set the share price at the decrease finish of a price vary.

Burjeel set its last provide price at 2 dirhams a share after it mentioned final week the vary could be between 2 dirhams and a couple of.45 dirhams.

“The price for the Offering has been set at AED 2.00 per unusual share,” Burjeel mentioned, and confirmed it will promote 11% of the corporate’s issued share capital, or greater than 550.7 million shares within the firm.

Gross demand for the IPO was greater than 32 billion dirhams, “implying an oversubscription degree of 29 occasions”, Burjeel mentioned, including the corporate was anticipated to have a market capitalisation of about 10.4 billion dirhams when listed, anticipated on Monday.

“The provide price displays our want to prioritize a supportive aftermarket efficiency post-listing and we’re delighted that Burjeel Holdings might be one of many largest non-public healthcare firms on ADX as soon as listed,” mentioned Shamsheer Vayalil Parambath, founder and chairman of Burjeel.

VPS Healthcare Holdings will proceed to personal a majority 70% stake in Burjeel following the itemizing, Burjeel mentioned.

In September, Abu Dhabi’s International Holding Company, chaired by the UAE’s nationwide safety adviser, purchased a 15% stake within the firm.

Dubai Islamic Bank (DISB.DU) was lead supervisor and First Abu Dhabi Bank lead receiving financial institution. International Securities was monetary adviser and BHM Capital Financial Services was the itemizing adviser, Burjeel mentioned. JPMorgan Securities acted as capital markets adviser to the corporate and promoting shareholder.

($1 = 3.6727 UAE dirham)

Reporting by Yousef Saba
Editing by Shri Navaratnam

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