Saudi-based healthcare provider Almoosa Health Company has announced its intention to launch an initial public offering (IPO) and list its shares on Tadawul.
The IPO will offer 13.29 million shares, comprising 9.3 million new shares issued by the company and 3.98 million existing shares sold by current shareholders. The total offering will represent 30% of Almoosa’s share capital after the issuance of new shares. The company’s capital post-IPO will amount to SAR 443 million, divided into 44.3 million shares. The offering price will be determined through a book-building process.
The proceeds from the IPO will primarily support Almoosa’s growth strategy, which includes expanding its bed capacity, investing in advanced medical technologies, and repaying portions of its existing debt. The company aims to capitalise on the rapid growth of Saudi Arabia’s healthcare sector, driven by demographic shifts and the government’s Vision 2030 initiatives.
The Company for Cooperative Insurance (Tawuniya) and Alfozan Holding Company have committed to act as cornerstone investors, collectively subscribing to 6.6% of the company’s post-offering share capital. Additionally, an Employee Investment Fund will purchase up to 0.3% of the post-IPO capital, allowing authorised employees to invest at the final offering price.
“This IPO is a transformative milestone for Almoosa Health,” said Malik Almoosa, CEO of the company. “We are committed to expanding access to quality care while achieving sustainable growth. Our plans include leveraging cutting-edge technologies, expanding our services, and building on our nearly three-decade legacy in healthcare.”
Almoosa reported revenues of SAR 979 million in 2023, reflecting an 18.1% compound annual growth rate (CAGR) between 2021 and 2023. Net income for 2023 reached SAR 98 million, representing a 25.4% CAGR over the same period. The company’s EBITDA margin has also shown significant improvement, rising from 15.8% in 2022 to 20% in 2023.
For the first nine months of 2024, the company recorded revenues of SAR 870 million and net income of SAR 40 million, highlighting its strong market position and operational efficiency.
Tranche allocations include:
- Institutional Investors (Tranche A): Up to 100% of the shares, with a potential allocation adjustment to a minimum of 80% based on retail subscription levels.
- Retail Investors (Tranche B): Up to 20% of the shares, representing 2.65 million shares.
