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Burjeel raises AED1.1bn from oversubscribed IPO

 

Abu Dhabi / WAM

Burjeel Holdings has announced the successful completion of the bookbuild and public subscription process for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
The price for the offering has been set at AED2.00 per ordinary share (the final offer price), and the offering size confirmed at 550,729,221 ordinary shares (offer shares), equivalent to 11 percent of Burjeel’s total issued share capital.
The group believes the offer price per share provides investors with a highly attractive value proposition that reflects the selling shareholder’s long-term confidence in Burjeel Holding’s growth trajectory and reflects its decision to prioritise a supportive aftermarket performance post-listing.
The offering will result in gross proceeds of AED1.1 billion for the company and the selling shareholder upon settlement. Based on the final offer price, Burjeel’s market capitalisation upon listing is expected to be approximately AED10.4 billion, making it one of the largest private healthcare companies on ADX by market capitalisation.
The offering saw significant demand from investors in the UAE and the region and closed multiple times oversubscribed. Total gross demand for the offering amounted to over AED32.0 billion, implying an oversubscription level of 29 times.
Commenting on the successful completion of the bookbuild, Dr Shamsheer Vayalil Parambath, Founder and Chairman of Burjeel Holdings, said, “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 offer price reflects our desire to prioritise 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,” Shamsheer said.
The success of the offering is also due to the supportive Abu Dhabi ecosystem and will help further diversify the local capital markets.”
Investors who subscribed via the first tranche (UAE retail offering) will receive an SMS confirmation of their respective allocation on October 8, with refunds due to commence from the same date.
Listing and the commencement of trading in Burjeel Holdings shares on ADX is expected to take place on October 10, subject to customary closing conditions, under the symbol “Burjeel” and ISIN “AEE01119B224”.
Upon listing on ADX, VPS Healthcare Holdings Pvt Ltd will continue to own a majority 70.0 percent stake in the company.

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