Saudi Arabia’s Magrabi Hospitals & Centers Company is considering an initial public offering (IPO) of its hospitals unit and has mandated banks for the deal, sources familiar with the matter said. Magrabi, which operates 66 hospitals and eye care centers across the kingdom and in Egypt, is owned by the publicly listed Saudi Eyecare Group.
The Riyadh-based company is one of the largest healthcare operators in Saudi Arabia with around 3,000 beds. It posted a net profit of SAR 64 million ($17 million) in 2020, up from SAR 27 million in 2019, according to its website.
What Is The Saudi Eyecare Group Magrabi?
The Saudi Eyecare Group Magrabi is a leading provider of comprehensive ophthalmic services in Saudi Arabia. It offers a full range of services including eye exams, refractive surgery, cataract surgery, corneal transplants, and glaucoma treatment. The group has 26 hospitals and more than 80 clinics across the country.
The Saudi Eyecare Group Magrabi is considering an initial public offering (IPO) of its hospital unit. This would be the first IPO for a healthcare company in Saudi Arabia. If successful, it would provide much-needed funding for the expansion of the group’s hospital network.
The IPO would also help to increase awareness of the group’s brand and attract more patients. The move would also allow existing shareholders to cash in on their investments. However, it remains to be seen if there is enough investor appetite for such a deal in Saudi Arabia.
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What Is An IPO?
An IPO, or initial public offering, is the first sale of stock by a private company to the public. IPOs are often issued by companies looking to raise capital to expand their business, or by venture capitalists looking to cash in on their investment.
IPOs typically involve the sale of newly issued shares of stock, but can also involve the sale of existing shares that are already owned by shareholders. The shares are usually sold through an investment bank or brokerage firm, and the proceeds from the sale are used to finance the company’s operations or expansion.
The decision to go public is a major one for any company, and there are a number of factors that need to be considered before taking the plunge. The most important thing to remember is that going public means giving up a certain degree of control over your company. Once you’re publicly traded, you’ll be subject to stricter regulation and more scrutiny from investors, analysts, and the media.
If you’re considering an IPO for your company, it’s important to consult with financial and legal advisors to make sure it’s the right move for your business.
Why is the Saudi Eyecare Group Magrabi considering an IPO of its hospital unit?
The Saudi Eyecare Group Magrabi is considering an IPO of its hospital unit in order to raise funds for expansion and to provide a liquidity event for its shareholders. The group has engaged Goldman Sachs and JPMorgan Chase to advise on the potential offering.
Saudi Arabia is an attractive market for healthcare investment due to its large population and high growth rate. The Saudi government is also investing heavily in the healthcare sector as part of its Vision 2030 plan.
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Magrabi operates a network of eye hospitals and clinics across Saudi Arabia, Egypt, the UAE, and Qatar. It is one of the largest eyecare providers in the Middle East and North Africa region.
An IPO would allow Magrabi to tap into the growing demand for healthcare services in the region and would provide it with the capital necessary to expand its operations. It would also give shareholders a way to exit their investment if they so desired.
How Will This IPO Impact The Saudi Eyecare Group Magrabi?
Magrabi Weighs IPO of Hospitals Unit, which could have a significant impact on the company.
If the IPO goes forward, it would be the first time that Saudi Arabia’s stock market has seen a healthcare IPO. The move could pave the way for other companies in the sector to follow suit and list their own shares on the stock exchange.
The IPO would also give investors a chance to buy into a leading player in Saudi Arabia’s rapidly growing healthcare sector. The country’s population is projected to reach 34 million by 2030, and the government is investing heavily in healthcare infrastructure to meet rising demand.
Magrabi operates 19 hospitals and 36 clinics in Saudi Arabia, making it one of the largest private healthcare providers in the country. It also has a presence in Egypt, Kuwait, and UAE.
The company has not yet said how much it plans to raise through the IPO or when it will take place. However, analysts expect that it could value Magrabi at around $1 billion.
Roles Of Rothschild & Co Firm And HSBC Bank In Magrabi Flotation
Rothschild & Co. and HSBC bank are acting as joint global coordinators and joint book-runners for the proposed initial public offering (IPO) of Magrabi Hospitals and Centers Company, a subsidiary of Saudi Eyecare Group.
The IPO is expected to raise up to SAR 1.8 billion (US$ 480 million), making it one of the largest healthcare IPOs in the GCC region in recent years.
Magrabi Hospitals owns and operates a network of 32 hospitals and eye care centers across Saudi Arabia, Egypt, Kuwait, and the United Arab Emirates. The company offers a range of services including ophthalmology, optometry, general surgery, orthopedics, ENT, dermatology, obstetrics & gynecology, and pediatrics.
Rothschild & Co.‘s role in the transaction includes acting as financial advisor to Magrabi Hospitals on the proposed IPO. Rothschild & Co. also acted as the exclusive financial advisor to Saudi Eyecare Group on its acquisition of a majority stake in Magrabi Hospitals from AlShaya Group in 2016.
HSBC’s role in the transaction includes acting as lead manager and underwriter for the proposed IPO.
Saudi Eyecare Group Magrabi is weighing an IPO of its hospitals unit, which could value the business at up to $1 billion. The move comes as the Saudi government looks to attract more investment into the healthcare sector and as Magrabi looks to expand its footprint in the region. Magrabi operates a network of hospitals and clinics across Saudi Arabia, Egypt, and the United Arab Emirates. The company is majority-owned by Abu Dhabi-based private equity firm Invest AD. A sale or IPO of Magrabi’s hospital unit would mark a divestment for Invest AD, which has been an investor in the company since 2007.