In 2016, Middle East Healthcare Company (MEAHCO) successfully closed its US$480 million (SAR1.80 billion) Initial Public Offering (IPO). MEAHCO is one of the leading healthcare service providers in Saudi Arabia, which operates under the brand name “Saudi German Hospital.” The IPO of MEAHCO was the first in 2016 in Saudi Arabia and is considered the largest IPO to take place in Saudi Arabia by a healthcare service provider to date. The IPO was an important milestone in MEAHCO’s successful journey and is indicative of the investment in Saudi Arabia’s healthcare industry.
The MEAHCO IPO secured two awards in Islamic Finance News (IFN’s) Deal of the Year 2016 awards in the category of Equity & IPO.
The IPO received an astounding reaction from the market, with the book building process generating an order book of around SAR10.5 billion, resulting in 593.7% of the total offered shares subscribed by institutional investors. The retail subscription by individual investors was 274% oversubscribed.
The IPO is unique in many ways. The first IPO of 2016 in Saudi Arabia, also the largest at the time of the issuance, it attracted a substantial number of eligible institutional and retail investors. It is also notable that there are not many IPOs carried out by Saudi-based healthcare companies. Highly reputable stakeholders, such as Bait Al Baterjee, the International Finance Corporation, the Islamic Development Bank and the Arab Fund, are amongst the main key shareholders of MEAHCO at the time of the IPO.
Engr. Sobhi Batterjee commented: “We are delighted to have received the award for this landmark transaction which is the culmination of a long journey”
While speaking Engr. Batterjee added that IPO of MEAHCO is the vision and strategy of the organization that will provide strong foundation for the further growth.
The healthcare company, which manages five major hospitals in Jeddah, Aseer, Riyadh, Madinah and Hail , is in the process of developing an additional hospital in Dammam.