Pure Health IPO: Company raises $986m in oversubscribed offering

Total gross demand for the share sale reached more than $72 billion

The IPO recorded 'significant demand' from investors within the UAE and the region, the company said. Photo: Pure Health

Pure Health has raised Dh3.62 billion ($986 million) from its initial public offering on the Abu Dhabi Securities Exchange in an oversubscribed deal fuelled by strong investor interest.

The IPO was oversubscribed across all tranches with total gross demand exceeding Dh265 billion ($72 billion), Pure Health, the UAE’s largest healthcare group, said on Tuesday.

The company set the price at Dh3.26 per share with an offering size of 1.11 billion ordinary shares, equivalent to 10 per cent of its total issued share capital.

The offering recorded "significant demand" from investors within the UAE and the region, Pure Health said.

The retail tranche was oversubscribed 483 times and the institutional offering attracted Dh186 billion, indicating an oversubscription level of 54 times.

The company expects to start trading on the ADX under the symbol "PureHealth" on December 20. On listing, the company’s market capitalisation is expected to reach Dh36.2 billion.

"There has been overwhelming demand for our IPO," said Farhan Malik, founder and managing director of Pure Health.

It is an "endorsement of the market's confidence in our achievements, the management’s execution capability, and our vision for growth", he said.

In January last year, ADQ signed a deal to merge its healthcare subsidiaries with Pure Health to create the largest healthcare provider in the Emirates.

Pure Health now has more than 25 hospitals, 100 clinics, diagnostic centres, health insurance solutions, pharmacies, health technology platforms and procurement solutions.

That includes facilities operated by Abu Dhabi Health Services Company, better known as Seha, the National Health Insurance Company (Daman), The Medical Office – overseeing Sheikh Khalifa Hospitals and healthcare facilities, and Rafed – a healthcare purchasing company.

Pure Health's network also includes laboratory operator PureLab, the Abu Dhabi Stem Cells Center, One Health – which provides medical solutions – and pharmacy The Life Corner.

The company also recently acquired Circle Health Group, the UK’s largest independent operator of hospitals, in a deal valued at Dh4.41 billion.

In May, Pure Health completed its Dh1.8 billion purchase of an equity investment in Ardent Health Services, the US’s fourth-largest privately held acute care hospital operator.

At listing, the founders will retain a 90 per cent stake in the company, Pure Health said.

First Abu Dhabi Bank acted as lead manager and lead receiving bank.

Markets in the Mena region have recorded strong listing activity this year amid increasing investor interest and a public mandate aimed at supporting IPOs to boost liquidity in local bourses.

There were a total of 29 IPOs with total proceeds of $5.8 billion in the first nine months of the year in the Mena region, with all the listing activity taking place in the GCC, EY said in a recent report.