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In an interview with Zawya Projects, CEO Malek Almoosa outlined how the IPO proceeds will be used to fund new hospital and primary health centre projects in the Eastern Province in line with Vision 2030.
Saudi Arabia’s Almoosa Health Company is looking to expand its healthcare capacity in the Kingdom’s eastern region through the proceeds of its Initial Public Offering (IPO), CEO Malek Almoosa said.
In an interview with Zawya Projects, Almoosa said the company aims to capitalise on the growing demand for healthcare services in the Eastern Province, while reinforcing its leadership in Saudi Arabia’s healthcare sector.
“Given the strong outlook and growing demand for quality healthcare in Saudi Arabia, particularly in the Eastern Province, we believe this is the right time for us to invest in the growth and expansion of our business, to meet the needs of the region, while inviting new shareholders to be a part of our compelling growth story,” Almoosa stated.
The company plans to offer 30 percent of its total share capital in the IPO, which will consist of 13.3 million shares, composed of 9.3 million new shares and 4 million existing shares.
Zawya reported on Wednesday that the company has set the offer price range for its IPO between SAR 123 and SAR 127 per share. This implies a total offering size of between SAR 1.63 billion and SAR 1.68 billion, making it the Kingdom’s second-largest IPO this year after Fakeeh Care Group.
“The Saudi Exchange was the natural listing venue for our company,” Almoosa said, citing Tadawul’s robust investor demand - local and international - and liquidity as key factors in the decision.
The company has secured cornerstone commitments from major investors, including Tawuniya (4.1 percent) and Alfozan Holding Company (2.5 percent) of the post-IPO capital. Additionally, an Employee Investment Fund has been constituted to enable employees to participate in the IPO. The Fund will acquire up to 131,250 oridinary shares (0.30 percent of post-capital increase) after the final offer price is determined.
Almoosa highlighted the rapid expansion of Saudi Arabia’s healthcare sector, supported by Vision 2030 initiatives and rising private sector participation. The sector is forecast to grow at a compound annual growth rate of 6.5 percent percent through 2030, reaching SAR 360 billion, he added.
“Saudi Arabia requires an estimated additional 25,000–35,000 acute beds in order to be in line with well-established healthcare systems globally. In the Eastern Province, where we operate, the acute bed gap is estimated to reach 4,000–5,000 beds by 2030,” Almoosa noted.
Private healthcare providers are expected to play a key role in addressing these challenges, he added.
“We are founded and operate in the Eastern Province and are committed to supporting the development of the country’s healthcare sector and making quality care more accessible to our communities,” he said.
Currently, the company’s two facilities in Al Ahsa, the 430-bed Al Moosa Specialist Hospital and the 300-bed Al Moosa Rehabilitation Hospital, serve approximately one million patients annually, supported by a team of 326 physicians.
The company is set to build two new hospitals and five primary care centres, further strengthening its presence in the Eastern Province.
[Editor’s note: The 400-bed Al Moosa Specialist Hospital in Al Khobar, designed by Perkins & Will, is scheduled to open in 2028, while the 300-bed Al Moosa Specialist Hospital in Al Hofuf, designed by HKS, is expected to open in 2027, according to the prospectus].
Excerpts from the interview:
What are Almoosa Healths key objectives for going public, and how will IPO proceeds support your expansion, including new hospitals and healthcare centers?
With a history of nearly 30 years of delivering world-class healthcare, we have grown to become the leading private operator in Saudi Arabia’s Eastern Province, providing integrated healthcare services that include primary, acute, and rehabilitative care services at Al Moosa Specialist Hospital and Al Moosa Rehabilitation Hospital.
Across our facilities, we have a capacity of 730 beds, serving approximately one million clients annually.
The proceeds from the IPO will be partially used to invest in our growth projects, including two specialist hospitals in Al Khobar and Al Hofuf. We have already begun excavation work at these sites, where our new facilities will add another 700 beds to our healthcare offering.
Additionally, we are growing our primary care network with five primary care centres distributed between Al Ahsa, Al Khobar, and Dammam.
What is your view on the growth potential of Saudi Arabia’s healthcare sector, and how do you see healthcare firms contributing to the country’s economic transformation?
We see a significant opportunity for leading private healthcare providers, such as ourselves, to address the gaps in line with Vision 2030’s health sector-focused Vision Realisation Programmes, such as the Health Sector Transformation Programme and Privatisation Programme, which seek to elevate healthcare delivery in the Kingdom through increased private sector participation.
We firmly believe that the growth of the healthcare sector will not only help transform the Kingdom’s economy through diversification but also play a critical role in elevating the nations health and well-being, as well as making it a more attractive business and tourism hub.
We are seeing more healthcare firms listing on the Tadawul exchange. What do you think is driving this trend?
There are several factors contributing to the listing of healthcare firms on the Saudi Exchange, including, as previously discussed, the strong outlook for the healthcare sector in the Kingdom. Additionally, with the sector playing a pivotal role in Saudi Arabia’s Vision 2030 and a robust economic outlook for Saudi Arabia, we see strong investor demand for healthcare offerings. We see these investments driving the advancement of Saudi Arabia’s healthcare ecosystem and contributing to a healthier society.
Lastly, could you comment on the Employee Investment Fund, which has been constituted as part of the IPO?
Our success has been driven by the hard work and dedication of our employees, who make it their priority to deliver outstanding patient care, day in and day out. Our decision to create an employee fund reflects our gratitude for their ongoing commitment to patient care and driving our future growth.
The fund enables our employees to participate in our success as we fulfill our mission of serving with passion across the care continuum, leading with innovation, and promoting community transformation. |
