NMC Health IPO raises £117m on London Stock Exchange
NMC Health has raised about £117 million (Dh688.5m) in an initial public offering on the London Stock Exchange in a move to help the company to finance major expansion plans in the UAE.
It plans to use the funding, as well as US$150 million (Dh550.9m) it has arranged in long-term debt, to finance up to $335m of upgrading and in creating new medical facilities during the next three years across the Emirates.
"I started with one clinic, one room," said Dr BRShetty, the founder and chief executive of NMC Health.
"The funds we have raised will enable us to implement our exciting growth plans, which include developing new and existing facilities and funding future growth opportunities for the benefit of our patients and shareholders alike."
NMC's plans include expanding from five to nine healthcare centres this year.
The company aims to buy a healthcare centre in Dubai and set up another in Abu Dhabi, as well as adding two new day-patient medical centres.
"These four will come online by the end of the year," said Binay Shetty, NMC's chief operating officer and the founder's son.
NMC had humble beginnings when Dr Shetty started it more than 35 years ago, when it was known as New Medical Centre. Since then, it has expanded to include a network of medical centres, hospitals and eight pharmacies across the Emirates.
Yesterday, its initial public offering (IPO) managed to sell 55.7 million shares for 210 pence each, and its stock price jumped to 220 pence in early trading under "conditional dealings".
The company said its market capitalisation at listing was valued at about £390m, and that its shares were expected to start full trading on Thursday. Last month, NMC said it was expecting to raise as much as $250m, or about £156m, in its IPO.
Listing in London rather than on a local exchange in the UAE or elsewhere in the Middle East would have enticed larger institutional investors based in Britain, said Daniel Rosen, a healthcare and pharmaceuticals analyst with Business Monitor International, a market research firm.
"Everyone's bullish about GCC health care at the moment," Mr Rosen added.
Deutsche Bank, which coordinated the deal, noted the liquidity of London's stock market proved more attractive compared with others in the UAE.
"We wanted to appeal to global emerging market funds and healthcare specialist investors," said Christopher Laing, a managing director at Deutsche Bank.
"They are all outside the UAE, and London worked well for that."
Updated: April 3, 2012 04:00 AM