Retail subscription to 2.66M shares of Almoosa Health starts on TASI today

One of Almoosa Health Co.'s hospitals

Retail investors began subscribing today, Dec. 23, to 2.66 million shares of Almoosa Health Co. at SAR 127 per share, as determined through the book-building process.

The retail tranche accounts for 20% of the total offering, with the subscription running for two days until Dec. 24.

For More IPOs

In September, the Capital Market Authority (CMA) approved Almoosa’s request to float 13.29 million shares, or 30% of the post-IPO capital, on the Main Market (TASI). The offering also represents 37.97% of the pre-IPO capital, with a nominal value per share of SAR 10.

The company’s institutional offering ended last week, with a coverage ratio of 103x.

Almoosa’s IPO is the 13th this year, following listings by after Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, and United International Holding Co. on Nov. 19.

Tadawul witnessed eight IPOs in 2023, including MBC Holding Group Ltd., Morabaha Marina and Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co., First Milling Co., Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co.

Key Background

Almoosa Health started its operations in 1994 as a branch of Abdulaziz Abdullah Abdulwahab Al-Moosa Trading Establishment under the name "Almoosa Specialist Hospital (Al-Ahsa)".

The company transformed into a limited liability company in 2018 and later became a closed joint-stock company in 2020.

Almoosa's pre-IPO capital reaches SAR 350 million, divided into 35 million shares, at a nominal value of SAR 10 each. The company's post-IPO capital will reach SAR 443.04 million, divided into 44.3 million shares.

The company operates primarily in the healthcare sector, providing integrated healthcare services, including primary care, critical care, and rehabilitation services at Almoosa Specialist Hospital (Al-Ahsa) and Almoosa Rehabilitation Hospital, Al-Ahsa. It also provides secondary services to this sector, such as pharmaceutical services, home healthcare, and telemedicine.

The company's hospitals, Almoosa Specialist Hospital in Al-Ahsa and Al Ahsa Hospital, focus exclusively on serving the Eastern Province. In 2023, they provided 9.3% and 4.8%, respectively, of the critical care beds available in the private sector in the region.

According to the prospectus, Almoosa Health owns 22 land plots and holds 44 lease contracts as a tenant, primarily for employee housing. Additionally, it has two lease contracts for establishing a primary healthcare center and one lease contract for a company warehouse.

Company Hospitals:

Almoosa Health has 730 beds across its hospitals in the Eastern Province and offers a comprehensive range of healthcare services.

The company also provides healthcare services to approximately one million patients annually, supported by a team of more than 2,900 employees, including 326 experienced physicians.

The company's total number of clinics is 290, as shown below:

Company’s Revenue:

Almoosa’s revenue increased by approximately 20% to about SAR 979 million in 2023, compared to more than SAR 816 million in 2022.

According to the prospectus, income from medical services accounts for 81% of total revenue during the period, while revenue from pharmaceuticals represents 19%, as shown in the following table:

Workforce

The number of employees at Almoosa reached 2,922 by the end of March 2024, of whom 1,275 are Saudi citizens, representing a Saudization rate of approximately 44%.

Branches:

The company has seven branches in the Eastern Province of the Kingdom, as shown below:

Future Plans and Initiatives:

The company plans to expand its operations in the Eastern Province, as it is working on designing, constructing, and developing two specialized hospitals in Al Khobar and Al-Ahsa, in addition to five primary healthcare centers in Al-Ahsa, Al Khobar, and Dammam, which are still under construction.