Healthcare group Fakeeh attracts orders of $91bn for Saudi IPO

Alamy via Reuters Connect

• 119 times oversubscribed
• Biggest Tadawul IPO of 2024
• Share price set at SAR57.5

The listing of healthcare conglomerate Fakeeh Care Group was 119 times oversubscribed by institutional investors, the Saudi stock exchange said on Tuesday.

The initial public offering was set to raise $763 million but attracted orders of $91 billion, reinforcing Saudi Arabia’s dominance of the region’s IPO market this year.

Fakeeh, which was founded in Jeddah in 1978, set a price of SAR57.5 per share, according to a statement from IPO lead manager HSBC. Individual investors will be able to subscribe for 10 percent of the total shares available on May 21 and 22. 

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This values the company at at least SAR12.3 billion ($3.3 billion).

The group, which owns four hospitals in the kingdom, is offering 30 million new shares and almost 20 million existing shares to investors on the main Saudi market, the Tadawul All Share Index.

Fakeeh is selling a 21.47 percent stake in the business through the IPO.

The book-building process for institutional investors ran from May 2 to 8 and was covered within minutes of opening. It has become the biggest Saudi IPO so far this year. 

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A supplementary prospectus said Olayan Saudi Investment Co. and sovereign wealth fund the Abu Dhabi Investment Authority had pledged to subscribe as cornerstone investors. 

The company’s four hospitals in Jeddah, Riyadh, Neom and Medina have 835 beds and 900 doctors. About 1.5 million patients were treated in 2023, up from 1.2 million in 2020.