Almoosa Health IPO’s retail tranche orders hit $372m

The retail tranche of Almoosa Health Company’s initial public offering (IPO) on the Saudi stock exchange was 408.7 percent oversubscribed, with the order book reaching SAR1.4 billion ($372.8 million).

It ran two days from December 23 and comprised 2.66 million shares, representing 20 percent of the IPO, at SAR127 per share.

Individual investors will receive a minimum of six shares each.

The remaining will be allocated pro-rata based on the size of individual investor’s request, compared to the total remaining subscribed shares, with an average allocation factor of 3.33 percent.

The institutional process attracted an order book of SAR173 billion, which was 103 times oversubscribed.

The expected market capitalisation of the company will be SAR5.63 billion, making it the kingdom’s second-largest IPO this year. 

Trading of the shares on the main market is expected to start after the completion of all relevant legal requirements and procedures. The trading date will be announced on the Saudi bourse.

Almoosa Health operates two facilities in Al Ahsa in the Eastern Province, with a total of 730 beds and 290 clinics.

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Saudi Arabia’s largest IPO this year was that of Dr Soliman Abdulkader Fakeeh Hospital Co, which sold $764 million of its shares. Modern Mills Co was the kingdom’s second biggest, raising $314 million.

Of Saudi Arabia’s 38 IPOs, 27 were by companies that subsequently listed on Nomu, Riyadh’s secondary market for smaller businesses.

Nomu’s biggest IPO was Fourth Milling Co’s $229 million flotation. The remaining 26 raised $277 million combined, London Stock Exchange data shows.