Dr. Sulaiman Al Habib Group debuts on Tadawul today

Dr. Sulaiman Al Habib Medical Services Group (HMG) started trading today, March 17, on The Saudi Stock Exchange (Tadawul) under the symbol 4013 in the healthcare sector, with a 10% daily price fluctuation limit per share.

The listing of HMG is the first on the main Saudi market so far during the current year, and the first in the health care sector since 2016.

Last year, Tadawul witnessed the listing and trading of Al Moammar Information Systems Co., Maharah Human Resources Co., Arabian Centres Co. and Ataa Educational Co. in addition to the history’s largest IPO of Saudi Aramco.

With this listing of HMG, the number of Saudi-listed companies reaches 182 in addition to 17 real estate investment traded funds (REITs).

The company floated 52.5 million shares for IPO representing 15% of its capital at SAR 50 per share, where 90% of the IPO shares were allocated for institutional investors while the remaining 10% were allocated for retail investors.

The Securities Depository Center Company (Edaa) deposited, on March 15, the subscribed shares of HMG into investors’ accounts, Argaam reported earlier.

The IPO was 8270% oversubscribed (83 times) with funds exceeding SAR 217 billion.

A minimum of 10 shares were allocated to each retail subscriber, and the remaining were allocated pro rata with an allotment ratio of around 8.6%.

Key Information:

The private medical group was established in 1993 as a sole proprietorship with SAR 100,000 capital in Riyadh. In 2007, it was converted into a limited liability company, ahead of converting into a closed joint stock company in 2013.

The company hiked its capital 4 times since inception. The first was in 2007 to SAR 500,000. Capital was again raised in 2013 to SAR 2 million, then to SAR 2.8 billion in early 2015 and in August 2015 to the current capital of SAR 3.5 billion, divided into 350 million ordinary shares at SAR 10 par value.

The group’s principal activities are the establishment and management of health and pharmaceutical facilities as well as HMG solutions, which includes home healthcare, medical laboratories, information technology and maintenance of facilities.

HMG also operates University Medical Center-King Abdullah Medical City Bahrain, along with intensive care units in 6 Ministry of Health facilities in 5 cities across the Kingdom.

In the pharmaceutical business, the group operates and manages 13 pharmacies within its healthcare properties providing over 14,000 medical and consumption products.

*the complex consists of 7 buildings of which 5 are owned and 2 are rented.

**Al Khobar Hospital started operations in Q2 2019. The company is currently hiring and relocating healthcare practitioners and employees.

Future Projects:

The group is currently designing, establishing and developing 3 private healthcare facilities within the Kingdom, including Northern Riyadh Hospital, South Western Jeddah Hospital, and Northern Jeddah Hospital.

The number of beds in the group reached 1,913 in 2019, excluding the planned expansion process, which will add another 1,180 beds in the upcoming years, bringing the total number of beds to 3,000.

As per the group’s prospectus, it plans to finance future projects through operating cash flows, Shariah compliant bank loans, and loans from the Ministry of Commerce. The medical group purchased all the land for future projects at a value of SAR 851 million.

* Fully owned by Sulaiman Abdulaziz Al Habib.

** Fully owned by Mohammed bin Abdulaziz Al Habib & Sons Holding