Skip to content Skip to Search
Skip navigation

UAE health firm Burjeel plans Saudi expansion as IPO nears

By Reuters
A Burjeel hospital Burjeel
VPS Healthcare Holdings will continue to own a majority 70% stake in Burjeel following the listing.
  • Burjeel is in talks to partner with public and private healthcare facilities
  • Burjeel Holdings will be listed on Abu Dhabi’s stock exchange this year

UAE healthcare provider Burjeel Holdings, established under VPS Healthcare, on Wednesday announced plans to expand into Saudi Arabia ahead of its initial public offering (IPO) later this year.

The company, which owns and operates hospitals and other healthcare facilities, will invest up to $1 billion in the Kingdom by 2030 as part of a memorandum of understanding (MoU) signed with the Ministry of Investment that includes working with local institutions.

“It’s a non-binding MoU but we are taking it seriously and I think the market is big. The potential is huge and we think that it is an achievable number,” CEO Shamsheer Vayalil told Reuters by phone.

Burjeel is in talks to partner with public and private healthcare facilities, including hospitals, in Saudi Arabia, he said.

“Our deployment will be more towards capex and towards operating … such assets and probably some refurbishment based on the condition of those assets that we are targeting right now.”

The investments in Saudi Arabia will likely be financed with project debt, though no talks with banks have begun, the CEO said.

Reuters reported in April that the Emirati healthcare firm hired JPMorgan and the investment banking arm of Dubai’s biggest lender Emirates NBD for the stock market listing.

Potential Listing

Burjeel Holdings was set up by Vayalil ahead of a potential listing, while certain entities not part of the public offering will remain under the VPS group.

EFG Hermes and Dubai Islamic Bank are global coordinators on the deal, Vayalil said.

Burjeel Holdings will be listed on the Abu Dhabi Securities Exchange (ADX) this year, he said. The exact timing has yet to be determined but “we are exploring the soonest window possible”, he added.

The value of the business and size of the IPO have yet to be determined, though a minority stake is expected to be offered.

“We have to get the feedback to get to the final number,” Vayalil said regarding how much the IPO could raise.  

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]