Saudi Arabia’s integrated healthcare services provider Fakeeh Care Group (FCG) has set the final offer price for its initial public offering (IPO) at SR57.5 ($15.3) per share.
This pricing announcement follows the successful completion of the institutional book-building period for all the participating parties.
The final offer price values the company at a market capitalisation of SR13.3bn ($3.6bn) at the listing.
The IPO is now expected to raise gross proceeds of SR2.9bn ($764m) for FCG and selling shareholders.
Earlier this month, the company announced the price range of its IPO and begun the institutional book building subscription period.
FCG reported that the institutional book-building process attracted substantial interest, with total orders reaching SR341bn from a wide range of investors from across Saudi Arabia, the Gulf Cooperation Council (GCC) region as well as globally.
For retail investors, the subscription period, as defined in the prospectus, will commence on 21 May 2024, and conclude on 22 May 2024.
Final allocations are scheduled to be disclosed on 27 May 2024, with any excess subscription funds to be refunded by 4 June 2024.
The company's shares are expected to begin trading on the Saudi Exchange after all relevant statutory requirements have been met.
FCG president Dr Mazen Soliman Fakeeh said: “We are delighted with the demand from institutional investors for Fakeeh Care Group’s IPO.
“Looking ahead, we are very excited about the future, leveraging our integrated healthcare model, well established academic roots and utilisation of advanced technologies to play a key role in Saudi Arabia’s growth trajectory for decades to come.”
The IPO consists of 49.8 million ordinary shares, which equates to 21.47% of the company's issued share capital after the capital increase.
This includes 30 million new ordinary shares and 19.8 million existing ordinary shares being sold by the company's selling shareholders.
Post-offering, the net proceeds from the sale shares will be distributed among the selling shareholders proportionally, on a pro-rata basis.
Meanwhile the proceeds from the new shares will be utilised by FCG to finance its growth strategy and for other general corporate uses.
