MENA Healthcare IPOs in Saudi Arabia
Saudi Arabia has led the MENA region’s healthcare IPOs this year. As of August 2024, all four healthcare IPOs in the region have been listed on the Saudi Exchange, raising a total of $920 million. Here’s a closer look at the details.
1. Fakeeh Care Group
IPO proceeds: $764 million
Change in share price since IPO: 0.7%
The Fakeeh Care Group’s IPO in May 2024 is the largest in the MENA region this year, raising $764 million. The IPO offered 21.47% of the company’s shares and was highly oversubscribed—119 times by institutional investors and 14.5 times by retail investors, with demand reaching $91 billion and $1.1 billion, respectively. In the three months after the IPO, the group’s share price rose by 0.7%, bringing its market value to $3.6 billion by the end of August 2024.
In the first half of 2024, the company’s total assets reached $1.4 billion, and revenues grew by 24% to $355.8 million, driven by a 12.2% increase in billable patients, totaling 829,377 during this period.
2. Avalon Pharma
IPO proceeds: $131.2 million
Change in share price since IPO: 65.4%
In January 2024, the Middle East Pharmaceutical Industries Company (Avalon Pharma) offered 30% of its shares on the Saudi Exchange. The retail offering was oversubscribed 54.3 times, while the institutional offering was covered 138.7 times, with demand reaching $712.1 million and $18.2 billion, respectively.
In the first half of 2024, Avalon Pharma generated $47.2 million in revenue, marking a 19% increase compared to 2023, with total assets valued at $124.3 million. Since the IPO, the company’s share price has surged by 65.4%, bringing its market capitalization to $723 million by the end of August 2024. Tabbaa National Holding Company remains the largest shareholder, holding 42.2% of the company.
3. Al-Modawat Specialized Medical Company
IPO proceeds: $14.1 million
Change in share price since IPO: 45%
In January 2024, Al-Modawat Specialized Medical Company offered 475,000 shares, representing 20% of its total shares, on the Saudi Exchange’s Nomu – Parallel Market. The offering was oversubscribed by 135.75%. In the seven months following the IPO, the company’s share price increased by 45%, reaching a market cap of $102 million by the end of August 2024.
As of June 2024, the company had total assets valued at $31 million. In August 2024, Al-Modawat, which primarily manages its affiliated hospital, announced its board’s approval to establish a fully owned subsidiary in Egypt. In September 2024, the company signed a 25-year contract with the Ministry of Municipalities and Housing to build and operate a medical complex in Mahayel Asir.
4. Qomel Company
IPO proceeds: $10.7 million
Change in share price since IPO: 35%
In April 2024, Qomel Company offered 14.29% of its shares through an IPO on the Saudi Exchange’s Nomu – Parallel Market, which was oversubscribed by 274.52%. In the four months following the IPO, the company’s share price rose by 35%, reaching a market cap of $100.8 million by the end of August 2024.
In the first half of 2024, Qomel generated $15.6 million in revenue, marking a 33% increase compared to the same period in 2023. The company’s total assets were valued at $43.7 million. Qomel has distribution agreements with multinational companies like Clinigen, Nova Laboratories, Trulife, and Plus Pharma for specialized medications and medical devices. It has also started building a pharmaceuticals factory in Riyadh.
Published: 18th September 2024
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