Burjeel Holdings IPO oversubscribed 29 times
- 05 Oct 2022
Burjeel Holdings has announced the successful completion of the bookbuild and public subscription process for its Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
The price for the Offering has been set at Dhs2.00 per ordinary share (the Final Offer Price), and the offering size confirmed at 550,729,221 ordinary shares (Offer Shares), equivalent to 11 percent of Burjeel’s total issued share capital.
The Group believes the offer price per share provides investors with a highly attractive value proposition that reflects the Selling Shareholder’s long-term confidence in Burjeel Holding’s growth trajectory and reflects its decision to prioritise a supportive aftermarket performance post-listing.
The Offering will result in gross proceeds of Dhs1.1 billion for the Company and the selling shareholder upon settlement. Based on the Final Offer Price, Burjeel’s market capitalisation upon listing is expected to be approximately Dhs10.4 billion, making it one of the largest private healthcare companies on ADX by market capitalisation.
The Offering saw significant demand from investors in the UAE and the region and closed multiple times oversubscribed. Total gross demand for the Offering amounted to over Dhs32.0 billion, implying an oversubscription level of 29 times.
Commenting on the successful completion of the bookbuild, Dr. Shamsheer Vayalil Parambath, Founder and Chairman of Burjeel Holdings, said, “I am delighted to welcome our new shareholders to Burjeel Holdings. The strong demand for the IPO, which was 29 times oversubscribed, reflects the high-quality investment opportunity provided by Burjeel Holdings, built around our clear clinical vision and our strong growth trajectory in the MENA region.
“The offer price reflects our desire to prioritise a supportive aftermarket performance post-listing. We are delighted that Burjeel Holdings will be one of the largest private healthcare companies on ADX once listed. The success of the offering is also due to the supportive Abu Dhabi ecosystem and will help further diversify the local capital markets.”
Investors who subscribed via the First Tranche (UAE Retail Offering) will receive an SMS confirmation of their respective allocation on 8th October 2022, with refunds due to commence from the same date.
Listing and the commencement of trading in Burjeel Holdings shares on ADX is expected to take place on 10th October 2022, subject to customary closing conditions, under the symbol “Burjeel” and ISIN “AEE01119B224”.
Upon listing on ADX, VPS Healthcare Holdings PVT LTD will continue to own a majority 70.0 percent stake in the Company.
Investors who subscribed via the First Tranche (“UAE Retail Offering”) will receive an SMS confirmation of their respective allocation on 8 October 2022 with refunds due to commence from the same date.
Upon listing on ADX, VPS Healthcare Holdings PVT LTD will continue to own a majority 70.0 per cent stake in the Company.
In September 2022, International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, announced its acquisition of a 15 per cent stake in Burjeel Holdings PLC in order to scale and diversify its local and regional healthcare investments.
Dubai Islamic Bank acted as Lead Manager and First Abu Dhabi Bank acted as Lead Receiving Bank. International Securities L.L.C. acted as Financial Advisor and BHM Capital Financial Services PSC acted as Listing Advisor.
JP Morgan Securities plc (“J.P. Morgan”) acted as capital markets advisor to the Company and Selling Shareholder in connection with the Offering.
Muhammad Rasoul, CEO, amana: “In 2022, we have witnessed a strong start to IPOs and trading activity across the country’s indexes. In the first six months alone, IPOs in the MENA region have raised nearly US $ 14 billion alone- that’s an astounding year-on-year increase of over 2952%. The success of the Burjeel IPO reiterates the region’s rise in the eye of the global markets. Already, we have witnessed strong trading activity across the UAE. Unlike the international markets, here we are observing a period of strong investor confidence, and most importantly innovation – indicative of the nation’s robust and consistent economic performance across public and private sectors. Safe to say, we are already looking at a record breaking year in the region for IPO performances, delivering new opportunities for investors and bucking the global trend.” Muhammad Rasoul, CEO, amana
Total gross demand for the Offering amounted to over AED 32.0 billion, implying an oversubscription level of 29 times in aggregate.
