News Column

CMA approves Al-Hammadi's IPO

May 20, 2014

Arab News, Jeddah, Saudi Arabia

May 20--RIYADH -- The Capital Market Authority (CMA) has approved the initial public offering (IPO) of Al-Hammadi Company for Development and Investment.

The company will issue 22.5 million new shares, representing 30 percent of Al-Hammadi's total share capital, which will be available for public subscription at a share price to be determined after the institutional book building process.

Samba Capital is acting as the financial adviser, lead manager, bookrunner and sole underwriter for the IPO. The offering is from June 11 to 17.

The IPO will be divided into two tranches; the first tranche will be for institutional investors, including mutual funds and authorized persons as well as listed companies in accordance with the regulatory guidelines, while the second tranche will be for Saudi retail investors. All offered shares will be allocated to the institutional investors.

However, the institutional bookrunner may allocate up to 50 percent of the shares being offered through the IPO to retail investors, equaling 11.25 million shares.

"The majority of the proceeds from the IPO will be used to finance the completion of Al-Nuzha Hospital, our third hospital in Riyadh, which will strengthen our footprint and enable us to serve the growing demand for health care services in the largest city in the Kingdom," says Mohammed bin Saleh Al-Hammadi, CEO of Al-Hammadi Company for Development and Investment.

"The IPO of Al-Hammadi will be a major milestone in the company's long and exciting journey and will provide us with the opportunity to significantly develop and expand our health care services as well as providing a platform to continue the leadership in the health care sector that Al-Hammadi has shown throughout the history of the company," he added.

"Our extensive expertise and experience includes managing some of the most successful IPOs in the Kingdom," says Salik Ahmed, CEO of Samba Capital. "We believe that the public listing of Al-Hammadi, a company with a long history of excellence in the provision of health care services in Riyadh, will further strengthen the Saudi stock exchange and we will work to ensure the success of the IPO."

With a history that dates back 30 years, Al-Hammadi is one of the leaders in health care service providers in Saudi Arabia. Its first hospital, the Al-Hammadi hospital, opened in the Olaya district of Riyadh in 1985 and has a capacity of 300 beds and 74 outpatient clinics. The company is in the process of opening two new hospitals, one in the Al-Suweidi district in the southwest of Riyadh, which is expected to open its doors to patients during Q3, 2014, and the other in the Al-Nuzha district in the northeast of Riyadh, which is expected to be operational by Q3, 2015. These two new hospitals will increase Al-Hammadi's capacity to 1,156 beds and will position Al-Hammadi as the largest health care service provider in Riyadh.


(c)2014 the Arab News (Jeddah, Saudi Arabia)

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Source: Arab News (Saudi Arabia)

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