Fakeeh Care Group lodges preliminary prospectus to list 49.8M shares on TASI

Logo of Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group)

Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group) announced issuing the preliminary prospectus for floating 49.8 million shares on the main market (TASI).

At the end of last March, the company obtained the approval of the Capital Market Authority (CMA) on the initial public offering (IPO).

For More IPOs

The offering will be through the issuance of 30 million new ordinary shares, paired with the sale of 19.8 million existing ordinary shares by the selling shareholders, according to the prospectus.

Shares put for sale and the newly-issued shares represent 8.53% and 12.93%, respectively, of the post-IPO issued capital, or 21.47% of the issued capital after the issuance of the new shares and the capital increase.

The group’s healthcare facilities and assets include 835 beds in four hospitals: Dr. Soliman Fakeeh Hospital in Jeddah, Dr. Soliman Fakeeh Hospital in Riyadh, Dr. Soliman Fakeeh Hospital in Madinah (to be inaugurated soon), and NEOM Hospital which will run via an operational contract. These facilities boast about 900 doctors.

At its facilities, Fakeeh Care Group features five outpatient healthcare centers (including NEOM's Advanced Care Center through an operational contract), in which 220 doctors are employed, in addition to many other integrated healthcare services.

The group also owns Fakeeh College for Medical Sciences, where 1,800 students are enrolled.

According to the prospectus, the group posted a net profit of SAR 232 million in 2023, while the adjusted net profit (excluding the Riyadh hospital) amounted to SAR 414 million for the same year, up 15.3% year-on-year. The profit margin stood at 18.3% by year-end.

The company intends to use the IPO proceeds, as well as other financial inflows including cash and loans, to finance the group's growth strategy and for public purposes, after deducting the offering fees amounting to SAR 75 million.