Blockbuster; Burjeel Holdings IPO oversubscribed by 29 times

By Rahul Vaimal, Associate Editor
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Burjeel Holdings Image
Representational Image | Image Courtesy: WAM

Abu Dhabi-based hospital operator Burjeel Holdings has revealed that the public subscription and book building phases of its Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX) have been successfully completed.

The offering amount has been confirmed at 550,729,221 ordinary shares, Offer Shares or 11 percent of Burjeel’s total issued share capital. The price for the offering has been set at $0.54 per ordinary share, the Final Offer Price.

From the Group’s perspective, the selling shareholder’s long-term trust in Burjeel Holding’s growth trajectory and its choice to prioritize a positive aftermarket performance post-listing, are reflected in the offer price per share, which offers investors a very tempting value proposition.

Upon settlement of the offering, the company and the selling shareholder will receive gross proceeds of $299 million. Burjeel is anticipated to have a market capitalization of around $283 million based on the Final Offer Price, making it one of the largest private healthcare firms on the ADX.

Investors in the UAE and the region showed strong interest in the offering, which closed many times oversubscribed. Over $871 million in total gross demand for the offering indicates a 29-time oversubscription level.

Dr. Shamsheer Vayalil Parambath of Burjeel Holdings
Dr. Shamsheer Vayalil Parambath
Founder & Chairman
Burjeel Holdings

“I am delighted to welcome our new shareholders to Burjeel Holdings. The strong demand for the IPO, which was 29 times oversubscribed, reflects the high-quality investment opportunity provided by Burjeel Holdings, built around our clear clinical vision and our strong growth trajectory in the MENA region.”

The Burjeel Holdings Chairman further added that, “The offer price reflects our desire to prioritize a supportive aftermarket performance post-listing. We are delighted that Burjeel Holdings will be one of the largest private healthcare companies on ADX once listed. The success of the offering is also due to the supportive Abu Dhabi ecosystem and will help further diversify the local capital markets.”

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