Burjeel Holdings to sell 11% stake, list on ADX

ABU DHABI / WAM

Burjeel Holdings on Monday announced its intention to list 11 percent of its share capital on the main market of the Abu Dhabi Securities Exchange (ADX).
The subscription period for the listing will open on Friday September 30 and close on Tuesday October 4. The company intends to list on ADX on Monday October 10.
The company’s planned listing will provide investors with an opportunity to gain exposure to one of Mena’s leading private healthcare service providers.
The company intends to offer 200,397,665 new shares, and VPS Healthcare Holdings (Selling Shareholder) intends to offer up to 350,331,555 existing shares in the company’s issued share capital (the Offering).
If all of the Shares are subscribed for and allocated and the offer size is not increased, the total offer size is currently expected to be 11 percent of the enlarged issued share capital of the company.
Of the offered Shares, 10 percent are to be allocated under the First Tranche and 90 percent are to be allocated under the Second Tranche.
For the year ended 31st December 2021 and the six months ended 30th June 2022, the Group had revenues of AED3,351.0 million and AED1,898.4 million, EBITDA of AED779.1 million and AED414.2 million, and net profits of AED234.1 million and AED152.9 million, respectively.
Commenting on the planned listing, Dr. Shamsheer Vayalil Parambath, Chairman of Burjeel Holdings, said, “Today’s announcement builds on our partnership with International Holding Company which will have a transformative impact for Burjeel Holdings through the addition of new capabilities, capital, and access to new markets. As healthcare expenditure continues to increase across the region, Burjeel Holdings is strongly positioned to benefit through our focus on providing complex, specialised medicine for all socioeconomic groups, through a targeted, multi-brand strategy.
“Our strength is reflected in our strong and profitable financial performance, where we recorded compound annual revenue growth of 18% between 2019-2021 and EBITDA growth of 37%.”
The group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40 to 70 percent of net income, dependent on the required investment for additional growth plans.
In the absence of any attractive investment opportunities that meet the Group’s investment criteria and return thresholds, the Group will distribute dividends at the upper end of the pay-out ratio range or potentially higher.
The first interim dividend is expected to be paid in the second half of 2023 on the basis of net income for the first half of 2023.