UAE-based Burjeel Holdings, which opened for subscription on Friday, set a price range of 2 to 2.45 Dirhams per share for its initial public offering (IPO). With this, Burjeel Holdings founded by Shamsheer Vayalil becomes the first privately owned firm to go public in UAE this year.
The selling shareholder expects to sell more than 350 million shares, or 7% of Burjeel's issued share capital, in addition to more than 200 million new shares, or 4% of its issued share capital, Burjeel said in a statement.
Burjeel Holdings could raise between $299.90 million and $367.38 million based on the price range. The subscription period for the IPO will be till October 4. The final share price is expected to be announced on Oct 5. The shares of the company which operates hospitals and medical centres in Oman will start trading on the Abu Dhabi Securities Exchange (ADX) on Oct 10.
JP Morgan Securities is the capital markets adviser to Burjeel.
11% of its share capital is listed in an IPO on the main market of the (ADX).
According to the issued prospectus, the company plans to offer about 550.7 million shares, including 350.3 million existing shares to be sold by VPS Healthcare Holdings which owns 79.8 per cent of Burjeel Holdings.
In a release, it was said that the company's planned listing will provide investors with an opportunity to gain exposure to MENA's leading private healthcare service providers with a vision to ensure quality healthcare and clinical excellence across the region.
According to media reports, so far all of the firms that have been listed in the UAE have been government-owned.
Burjeel operates hospitals and medical centres in the UAE and Oman. Earlier in August, the company had announced its plans to expand into Saudi Arabia.
