Almoosa Health Set to Raise Millions in Saudi Stock Exchange IPO

Almoosa Health, a major healthcare provider in Saudi Arabia's Eastern Province, is set to make waves in the Kingdom's equity market with its initial public offering (IPO). The company announced plans to list 30 percent of its shares on the main Saudi Stock Exchange (Tadawul), joining a wave of firms tapping the Kingdom's burgeoning healthcare sector.

The IPO, following regulatory approval from the Capital Market Authority in September, could be among the largest in Saudi Arabia this year, following healthcare peer Fakeeh Care Group's $764 million offering. Almoosa Health's listing is expected to draw strong investor interest, given the sector's robust performance. As of September 2024, Dr. Sulaiman Al Habib Medical Services Group and Saudi German Health traded at price-earnings ratios of 36.1 and 20.6 times respectively, indicating a bullish outlook for the healthcare sector.

Almoosa Health is offering 13.29 million shares through a combination of new and existing stock, with cornerstone investors Tawuniya and Alfozan Holding committing to take 4.1 percent and 2.5 percent stakes respectively. The offering comprises 9.3 million new shares and nearly 4 million existing shares, with the institutional book-building process slated to begin on December 4, 2024.

The company, which currently operates 730 beds across two hospitals, plans to use the proceeds to fund expansion and reduce debt. Its growth strategy includes doubling bed capacity to 1,430 by 2028 through two new hospitals in Al Hofuf and Khobar, alongside establishing five primary care centres across the Eastern Province. Almoosa Health reported revenue of SAR979 million ($261 million) in 2023, with net income of SAR98.1 million, demonstrating the company's strong financial position and growth potential.



Almoosa Health's expansion plans align with Saudi Arabia's healthcare market growth, which is forecast to reach SAR360 billion by 2030, growing at 6.5% annually. The private sector's contribution is expected to increase to 25 percent by 2030 from 18 percent in 2023, creating ample opportunities for growth in the healthcare sector.

The company's IPO comes amid a busy year for Saudi healthcare IPOs, with investors eager to capitalize on the sector's growth prospects. Almoosa Health's strong institutional confidence, as demonstrated by cornerstone investors' commitments, bodes well for the success of its IPO and future growth.