Overview of Almoosa Health

One of Almoosa Health Co. hospitals

The Offering Period for Individual Subscribers will be open on 23 December 2024 and closes on 24 December 2024.

Up to 2.66 million shares will be allocated to individual investors, representing 20% of the total IPO shares, amounting to 12.29 million shares.

The Company has entered into a binding undertaking with each of The Company for Cooperative Insurance (Tawuniya) and Alfozan Holding Company (together referred to as the “Cornerstone Investors”) through which the Cornerstone Investors have committed to subscribe to, in aggregate, 2,924,036 Offer Shares at the Offer Price, representing 22% of the Offer Shares (“Cornerstone Commitment”). The Cornerstone Commitment comprises 1,817,397 shares to be subscribed by the Company for Cooperative Insurance (Tawuniya) and 1,106,639 shares by Alfozan Holding Company, representing approximately 4.1% and 2.5%, respectively, of the Company’s share capital after the Offering.

Almoosa Health recently announced the successful completion of the book-building process for participating parties and set the final price for the IPO shares at SAR 127 per share, PRICING AT TOP OF RANGE WITH OVERSUBSCRIPTION OF 103x.

The company added that the institutional book-building process was driven by an order book of approximately SAR 173 billion and was 103 times oversubscribed.

Last September, the Capital Market Authority (CMA) approved the company’s request to offer 30% of its shares to the public on the main market (TASI).

The company operates in the healthcare sector, providing integrated services including primary, critical, and rehabilitation care at Almoosa Specialist Hospital and Almoosa Rehabilitation Hospital in Al-Ahsa.

Additionally, it offers secondary services such as pharmaceuticals, home healthcare, and telemedicine services.

Almoosa Health has established itself as a reputable leader in the healthcare sector for nearly three decades, providing a wide array of patient services that cover the full spectrum of care, supported by a skilled team of 326 physicians. In terms of financial performance, Almoosa Health reported revenues of SAR 979 million and a net income of SAR 98 million in 2023, with nine-month results for 2024 showing SAR 870 million in revenue and SAR 40 million in net income.

According to the prospectus, the Kingdom faces a significant gap in the medical (physical) sector for rehabilitation and long-term care services. KSA still requires an estimated additional 20 – 25 thousand post-acute beds to be in line with well-established healthcare systems

The prospectus indicated that the number of facilities allocated for these services does not exceed 22, with only about 3,000 beds, according to 2022 data. The additional gap for these services in the Eastern Region is estimated to be between 2,500 and 3,000 beds by 2030.

The private sector accounts for 56% of the total beds, with potential for an increase in the near future, supported by the inclusion of these services among the main priorities of partnerships between the public and private sectors.

The government stimulates the participation of the private sector in providing rehabilitation and long-term care services to ease the burden on the public sector. This comes in response to the anticipated increase in demand over the coming years, driven by factors such as the growing aging population, the rise in chronic and lifestyle-related diseases, and rapid urbanization.

Almoosa Rehabilitation Hospital, launched in 2023, accounts for 51.5% of the Eastern Province's private post-acute bed supply and ranks third in the Kingdom, contributing 14% of the total beds in this sector, with a capacity of 300 beds.

Sultan bin Abdulaziz Humanitarian City (SBAHC), Almoosa Rehabilitation Hospital in Al-Ahsa, and Health Oasis Hospital together account for about 55% of the Kingdom’s private post-acute bed supply, as the following table shows:

According to the prospectus, Almoosa Specialist Hospital (Al-Ahsa) received 26,524 patients from various regions across the Kingdom over the past three years, along with 7,374 patients from other countries, including Qatar, Kuwait, the UAE, India, and the Philippines.

The company unveiled plans to expand its core multispecialty infrastructure by adding 2 new facilities in Al Hofuf with a capacity of 300 beds by 2027, and Al-Khobar with 400 beds by 2028. This will in turn help bridge the acute care need gap in the Eastern Province, which currently has 2.5 beds per 1,000 capita compared to 3.2 beds per 1,000 capita on average in OECD countries.

The company also announced plans to open five primary care centers by 2027 to support Saudi Vision 2030 in developing a primary care gatekeeper model. These centers will offer nine diverse medical specialties, including family medicine, urgent care, pediatrics, obstetrics, and gynecology, as well as pharmacies, laboratory services, and radiology.

It highlighted that these initiatives will strategically help the company capitalize on the rising demand for primary healthcare services in the Kingdom, driven by government trends expected to accelerate the growth of such services in the short and long term.

The detailed plan for opening the centers is as follows:

- Three primary care centers in Al-Ahsa, scheduled to open in Q2 2025, Q4 2025, and Q2 2027, respectively.

- One primary care center in Al-Khobar, scheduled to open in Q1 2026.

- One primary care center in Dammam, scheduled to open in Q4 2027.

Almoosa Health stated that each new center will feature a dedicated pharmacy, ensuring medication provision and related services to enhance healthcare coverage and broaden access.

The company introduced the region’s first smart outpatient pharmacy and an advanced automated inpatient pharmacy, alongside telehealth solutions like video consultations and mobile platforms to boost efficiency and improve patient experience.

By Q3 2024, inpatients rose to 9,278, and outpatient visits reached 251,696, bringing total patients to 260,974.

Out-patient revenue increased by 32.2% from SAR 423.3 million in 2022G to SAR 559.5 million in 2023G driven by the increase in the number of patients by 15.5% coupled with an increase in the average revenue per patient by 14.5% mainly driven by the ramp up in operations of the North Tower. while clinic numbers increased to 290, as detailed below: