- Burjeel Holdings completes its listing on ADX, raising gross proceeds of over AED 1.1 billion following strong demand from local retail and professional investors
- Based on the final offer price of AED 2.00 per share, Burjeel Holdings’ market capitalization at listing was AED 10.4 billion, making it the largest healthcare company trading on ADX
- Total gross demand for the Offering amounted to over AED 32.0 billion, implying an oversubscription level of 29 times in aggregate
- The Group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40 to 70 per cent of net income, dependent on the required investment for additional growth plans
Abu Dhabi, 10 October 2022: Burjeel Holdings PLC (“Burjeel” or the “Company” and, together with its subsidiaries, the “Group”), a leading MENA private healthcare services provider, listed today on the Abu Dhabi Securities Exchange (“ADX”), following the completion of its Initial Public Offering (“IPO”).
The IPO, which raised gross proceeds of more than AED 1.1 billion for the offering of 11 per cent of the Company’s total issued share capital, attracted total gross demand of more than AED 32.0 billion and was 29 times oversubscribed in aggregate. Burjeel Holdings’ shares were priced at AED 2.00, implying a market capitalization for the Company of AED 10.4 billion at the time of listing. At the time of listing, Burjeel Holdings is the largest healthcare company trading on ADX.
The Group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40 to 70 per cent of net income, dependent on the required investment for additional growth plans.
Founded in 2007 with the opening of LLH Hospital in Abu Dhabi and with a vision to ensure accessible, affordable and high-quality healthcare to all segments of society in the UAE, Burjeel Holdings now operates an integrated healthcare network of 61 assets, including 16 hospitals and 23 medical centers across primary, secondary, tertiary and quaternary care, with its expansion into the Kingdom of Saudi Arabia commencing shortly.
Speaking at the opening bell-ringing ceremony, His Excellency Hisham Khalid Malak, Chairman of ADX, said: “We congratulate Burjeel Holdings on its successful IPO and welcome it to the ADX platform. Burjeel Holdings is an example of how entrepreneurs and companies with a clear vision and commitment to excellence can rise to become leading publicly listed companies. ADX is proud of the role it continues to play in the UAE’s economic diversification efforts, providing companies a platform to reach global investors in a diverse capital market ecosystem.”
Burjeel Holdings Founder and Chairman, Dr. Shamsheer Vayalil Parambath, added: “Today we celebrate our successful offering and listing on ADX in Abu Dhabi, an Emirate so integral to our journey. We’re delighted to see our many years of dedication and commitment culminate in this milestone. Our IPO demonstrates our commitment to helping grow the UAE’s capital markets ecosystem through expanding the UAE economy and private sector, further cementing Abu Dhabi’s role as an attractive destination for investment. That we are here today is testament to the immense passion, perseverance and dedication of our people who, collectively, have built Burjeel Holdings into one of the MENA region’s leading healthcare providers and the largest healthcare company on ADX.”
Listing and trading on ADX commenced at 10:00 AM Gulf Standard Time on October 10, 2022, under the symbol “BURJEEL” and ISIN “AEE01119B224”.
Upon listing, VPS Healthcare Holdings PVT LTD continues to own a majority 70.0 per cent stake in the Company. In September 2022, International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, announced its acquisition of a 15 per cent stake in Burjeel Holdings PLC in order to scale and diversify its local and regional healthcare investments.
Dubai Islamic Bank PJSC acted as Lead Manager and First Abu Dhabi Bank PJSC acted as Lead Receiving Bank. International Securities L.L.C. acted as Financial Advisor and BHM Capital Financial Services PSC acted as Listing Advisor.
J.P. Morgan Securities plc (“J.P. Morgan”) acted as capital markets advisor to the Company and Selling Shareholder in connection with the Offering.
INVESTOR / ANALYST ENQUIRIES
Chetan Sehgal +971 56 682 0515
Andy Parnis +971 58 581 495
Stephen Smith +971 58 546 1588
Dubai Islamic Bank PJSC
LEAD RECEIVING BANK
First Abu Dhabi Bank PJSC
International Securities L.L.C.
This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment whatsoever. Investors should not purchase any shares referred to in this announcement except on the basis of information in the Prospectus to be published by Burjeel Holdings in due course in connection with the proposed admission of the Shares to listing and trading on the ADX. The IPO and the distribution of this announcement and other information in connection with the IPO in certain jurisdictions may be restricted by law and persons into whose possession this announcement, any document or other information referred to herein comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
In particular, this announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States, Australia, Canada, the United Arab Emirates or Japan, or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States and the offer and sale of the securities referred to herein has not been and will not be registered under the U.S. Securities Act of 1933 or under the applicable securities laws of the United States, Australia, Canada or Japan. There will be no public offer of the securities in any jurisdiction other than the UAE. Copies of this announcement are not being, and should not be, distributed in or sent into the United States, Australia, Canada or Japan.
This announcement does not constitute a recommendation concerning the IPO. The price and value of securities and any income from them can go down as well as up and you could lose your entire investment. Before purchasing any securities in Burjeel Holdings, persons viewing this announcement should ensure that they fully understand and accept the risks which will be set out in the Prospectus prepared for the IPO, when published. There is no guarantee that the IPO will take place and potential investors should not base their financial or investment decisions on the intentions of Burjeel Holdings, the Selling Shareholder or any other person in relation to the IPO at this stage. Potential investors should consult a professional adviser as to the suitability of the IPO for the person(s) concerned.
This announcement contains “forward-looking” statements, beliefs or opinions, including statements with respect to the business, financial condition, results of operations, liquidity, prospects, growth, strategy and plans of Burjeel Holdings, and the industry in which Burjeel Holdings operates. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on the Company’s current beliefs and expectations about future events. Forward looking statements are sometimes identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and involve predictions. Forward looking statements may and often do differ materially from actual results. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the directors or Burjeel Holdings with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, concerning, amongst other things, the results of operations, financial condition, prospects, growth and strategies of Burjeel Holdings and the industry in which it operates.
No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing Burjeel Holdings. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements. The forward-looking statements contained in this announcement speak only as of the date of this announcement. Burjeel Holdings, the Selling Shareholder and their respective affiliates expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law.
J.P. Morgan is not participating in, or managing, any aspect of the Offering (including, without limitation, marketing to investors, the related book-building process, the preparation and publication of the Prospectus (including with respect to the truth, accuracy, completeness or fairness of any information or opinions in such document (or whether any information has been omitted therefrom)), the provision of underwriting services or receiving any part of the subscription monies payable under the Offering).
None of J.P. Morgan or any of its affiliates, or any of their respective directors, officers, employees, advisers, agents, accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions in this announcement (or whether any information has been omitted from this announcement) or any other information relating to Burjeel Holdings or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith. J.P. Morgan Securities plc is authorised by the Prudential Regulatory Authority and regulated by the Financial Conduct Authority and the Prudential Regulatory Authority in the United Kingdom.
J.P. Morgan is acting exclusively for the Company and the Selling Shareholder and no-one else in connection with the Offering. It will not regard any other person as its client in relation to the Offering and will not be responsible to anyone other than the Company and the Selling Shareholder for providing the protections afforded to its clients, nor for providing advice in relation to the Offering, the contents of this announcement or any transaction, arrangement or other matter referred to herein.