Ultimate magazine theme for WordPress.

Hospital operator Burjeel sets IPO price on the low end to raise $300 million

DUBAI, Oct 5 (Reuters) – Abu Dhabi-based hospital operator Burjeel Holdings said on Wednesday it expects gross proceeds of about 1.1 billion dirhams ($299.51 million) from its IPO after listing the share price at the lower end of a had set price range.

Burjeel set its final offer price at 2 dirhams per share after announcing last week that the range would be between 2 dirhams and 2.45 dirhams.

“The price of the offering has been set at AED2.00 per common share,” Burjeel said, confirming that 11% of the company’s issued share capital, or more than 550.7 million shares of the company, would be sold.

Sign up now for FREE unlimited access to Reuters.com

to register

Gross demand for the IPO was more than 32 billion dirhams, “implying a 29-fold oversubscription,” Burjeel said, adding that the company is expected to have a market cap of around 10.4 billion dirhams when it lists on Monday .

“The offer price reflects our desire to prioritize supportive aftermarket performance post-listing and we are pleased that Burjeel Holdings will be one of the largest private healthcare companies on the ADX once listed,” said Shamsheer Vayalil Parambath, Founder and Chairman of Burjeel.

VPS Healthcare Holdings will continue to own a controlling 70% stake in Burjeel after the listing, Burjeel said.

In September, Abu Dhabi’s International Holding Company, chaired by the UAE’s National Security Advisor, acquired a 15 percent stake in the company.

Dubai Islamic Bank (DISB.DU) was Lead Manager and First Abu Dhabi Bank Lead Receiving Bank. International Securities was financial advisor and BHM Capital Financial Services was the listing advisor, Burjeel said. JPMorgan Securities acted as the Company’s capital markets advisor and selling shareholder.

($1 = 3.6727 UAE Dirham)

Sign up now for FREE unlimited access to Reuters.com

to register

Reporting by Yousef Saba Editing by Shri Navaratnam

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.

%d bloggers like this: