The Offering Period of Almoosa Health's IPO for Individual Subscribers is now open, starting from today, 23 December 2024, and will close on 24 December 2024.

A total of 2.66 million shares, accounting for 20% of the total IPO shares, will be allocated to individual investors.

Institutional Offering Results

In terms of the pricing, Almoosa Health has successfully concluded its book-building process with strong demand, setting the final price for the IPO shares at SAR 127 per share, top of the pricing range. The offering was priced at the top of the range and oversubscribed by 103 times, driven by a total order book of approximately SAR 173 billion.

Additionally, the company has secured a binding commitment from its Cornerstone Investors—The Company for Cooperative Insurance (Tawuniya) and Alfozan Holding Company. Together, they have agreed to subscribe to 2,924,036 shares, representing 22% of the offer. Specifically, Tawuniya will subscribe to 1,817,397 shares, and Alfozan Holding Company will acquire 1,106,639 shares, which corresponds to approximately 4.1% and 2.5%, respectively, of the company’s total share capital after the offering.

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Key Investment Highlights and Strategic Plans

1. Macroeconomic Support for Saudi Healthcare Sector Growth

• Saudi Arabia’s long-term economic outlook is strong, underpinned by Vision 2030 and strategic economic diversification initiatives.
• The Saudi healthcare market is projected to grow at a 6.5% Compound Annual Growth Rate (CAGR) from 2023 to 2030, reaching SAR 360 billion. Private sector contribution is expected to rise from 18% in 2023 to 25% by 2030.
• The 60+ age group in Saudi Arabia is expected to grow at a CAGR of 10% between 2022 and 2030, significantly outpacing overall population growth.
• The Eastern Province, where Almoosa Health operates, is poised to see increased demand for healthcare due to its role as a hub for energy, petrochemicals, and mining.

2. Comprehensive Healthcare Services

• Almoosa Health is a leading integrated healthcare provider offering services across Primary, Acute Care, Rehabilitation, and Extended Care.
• Plans to open five standalone primary healthcare centres by 2027, offering nine specializations.
• Almoosa plans to expand its multispecialty infrastructure by adding two new hospitals: one in Al Hofuf (300 beds) by 2027 and one in Khobar (400 beds) by 2028. The Eastern Province currently has 2.5 beds per 1,000 people, below the OECD average of 3.2.

3. Innovative and Integrated Care Model

• Almoosa employs a patient-centric, efficient, and scalable ‘hub and spoke’ model that integrates primary, acute, and rehabilitation care.
• The Company utilizes modern technologies and innovative care management strategies to enhance patient satisfaction and outcomes.
• Patients benefit from a seamless healthcare experience across the Almoosa ecosystem, including home healthcare and telemedicine.

4. State-of-the-Art Healthcare Technology

• Almoosa Specialist Hospital in Al-Ahsa uses advanced technology to improve patient engagement and decision-making.
• The Company employs innovative health IT solutions such as Health Information Systems (HIS) and Yasassii, which streamline patient information management.
• Achieved HIMSS Stage 7 Accreditation, reflecting advanced technology adoption.
• Advanced Medical Equipment includes:
  • Tesla 3 MRI for high-resolution imaging.
  • Hybrid Operating Rooms for complex surgeries.
  • Automated Systems in labs and pharmacies to enhance workflow efficiency.

5. Strong Financial Performance and Growth Plans

• Almoosa’s revenue grew at a CAGR of 18.1% from 2021 to 2023, reaching SAR 979 million in 2023 and SAR 870 million for 9M 2024.
• EBITDA growth outpaced revenue, expanding at a CAGR of 37%, driven by workforce optimization and expansion of clinical services.
• EBITDA margin improved from 15.8% in 2022 to 20.0% in 2023.
• Net income grew at a CAGR of 25.4% from 2021 to 2023, reaching SAR 98.1 million in 2023.

6. Strategic Expansion Plans

• Almoosa plans to add 700 beds by 2028, reaching a total of 1,430 beds across four hospitals and five primary care centres.
• New hospitals include Al Moosa Specialist Hospital in Al Hofuf (300 beds, 200 clinics) by 2027 and Al Moosa Specialist Hospital in Al Khobar (400 beds, 300 clinics) by 2028.
• Five primary care centres will be established across Al Ahsa, Al Khobar, and Dammam between 2025 and 2027.
• Land acquisition and excavation have already begun for the new hospitals in Al Khobar and Al Hofuf.

7. Founder-Led Business with Strong Leadership

• Almoosa Health is led by CEO Mr. Malik Almoosa and supported by a management team with an average industry experience of 25 years.
• The Board, headed by Founder and Chairman Mr. Abdulaziz Almoosa, has a strong track record of clinical excellence and a deep understanding of the Saudi healthcare sector.

8. Capital Structure and Dividend Policy

• Post-IPO, Almoosa’s share capital will total SAR 443,035,800, divided into 44,303,580 ordinary shares.
• The Company plans to distribute annual dividends, subject to approval by shareholders and based on various factors, including profits, cash flows, and market conditions.
• Recent dividends included SAR 48 million for FY 2021, SAR 94 million for FY 2023, and SAR 27 million for Q1 2024. No dividends were paid for FY 2022.

9. Hospitals’ Operational Information by March 2024

10. Company’s Future Projects

Substantial Shareholders of the Company Pre- and Post Offering

Source: The Company

IPO Details

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Expected Offering Timetable

Note: The schedule and dates above are approximate. Actual dates shall be announced on the websites of Tadawul (www.saudiexchange.sa), the Company (www.almoosahealthgroup.org) and the Financial Advisor, Saudi Fransi Capital (www.bsfcapital.sa).

Read the full Prospectus

- Reporting by Zaid, Sahm News team