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Saudi Arabia’s Almoosa said on Thursday that it plans to sell a 30 per cent stake through an initial public offering (IPO) on the Saudi Exchange (Tadawul), the latest in a series of healthcare listings in the kingdom.
The healthcare operator is offering 13.3 million shares to investors – equivalent to 30 per cent of the company’s paid-up capital.
Almoosa said the offering price will be determined at the end of a book-building process. It is offering the shares in two tranches — institutional investors and retail investors— between December 5 and December 24, with final allocations due on December 29.
The Company for Cooperative Insurance (Tawuniya) and Alfozan Holding have agreed to subscribe to 4.1 per cent and 2.5 per cent of the offering, respectively, as anchor investors.
“Driven by our commitment to maintaining strong operating leverage and efficiencies that enhance financial performance, we believe that we have reached the right point in our journey to invite new shareholders to participate in our future growth,” said Malik Almoosa, CEO of Almoosa Health.
“Today, we operate a leading integrated healthcare ecosystem offering a comprehensive range of services to patients across the care continuum, and we aim to double current bed capacity while focusing on key areas such as investment in human capital, promoting greater health awareness and building on our leadership in quality care.”
Founded in 1996, Almoosa is expanding its healthcare network with the addition of 700 beds, ultimately reaching a total of 1,430 beds across four hospitals. The healthcare group intends to open Almoosa Specialist Hospital in Al-Hofuf by 2027, featuring 300 beds, 200 clinics, and a pharmacy, and another specialist hospital facility in Al-Khobar in 2028, with 400 beds, 300 clinics, and a pharmacy.
Furthermore, Almoosa also intends to establish five primary care centres in the Eastern Province between 2025 and 2027, strategically located in Al Ahsa, Al Khobar, and Dammam.
The hospital operator’s revenues reached SAR979m in 2023 and SAR870m in the first nine months of 2024. Between 2021 and 2023, its net income grew at a CAGR of 25.4 per cent to reach SAR 98.1m in 2023 and SAR40m in the nine months ending September 30.
Saudi Arabia has seen a string of listings in the sector, including Avalon Pharma, Fakeeh Care Group and Dr. Sulaiman Al Habib Medical Group. Almoosa is working with EFG Hermes, Saudi Fransi Capital and Moelis & Co. on the deal.