EFG Hermes, a leading investment bank in the Middle East and North Africa (MENA), has completed its advisory role in the $764m initial public offering (IPO) of Fakeeh Care Group (FCG) on the Saudi Exchange. As a joint bookrunner and underwriter, EFG Hermes played a pivotal role in this landmark transaction.
Fakeeh Care Group offered 30,000,000 new ordinary shares (representing 12.93%) and 19,800,000 current ordinary shares (representing 8.53%) at SAR 57.5 per share, resulting in a market capitalization of SAR 13.3bn ($3.6bn). The IPO garnered significant interest from local, regional, and international investors, with the total book covered approximately 119 times. Trading of FCG shares commenced under the ticker “FCG” on Wednesday.
Karim Meleka, Co-Head of Investment Banking at EFG Hermes, commented: “We are delighted and proud of our role in the successful IPO of Fakeeh Care Group. This transaction adds to our successful track record of supporting healthcare advancements in the Kingdom of Saudi Arabia (KSA), following our involvement in Habib Medical Group, Al Meswak, and now Fakeeh Care Group”. He added: “In facilitating the IPO of Fakeeh Care Group, EFG Hermes has once again demonstrated its unwavering commitment to fostering transformative investment opportunities within the MENA region. The resounding success of Fakeeh Care Group’s IPO underscores the resonance of its value proposition among both regional and international investors, along with the robust appetite for investment opportunities within Saudi Arabia’s burgeoning healthcare sector. This transaction represents yet another milestone in our continued commitment to driving strategic investment initiatives that redefine the contours of the regional investment landscape.”
Fakeeh Care Group is one of Saudi Arabia’s premier integrated providers of high-quality healthcare, trusted by families for more than four decades. FCG offers 835 beds across four hospitals – Soliman Fakeeh Hospital (DSFH) Jeddah, DSFH Riyadh, NEOM Hospital through an operating model and the soon-to-be-completed DSFH Madinah – with around 900 doctors. The Group boasts five medical centres (including NEOM Advanced Medical Center through an operating model) with around 220 doctors, complemented by a range of integrated healthcare services to meet everyday health needs. Its operational excellence is driven by its highly integrated hub-and-spoke healthcare model, a structure that maximizes efficiency while being adaptable.
This transaction is the latest in a series of landmark deals the Firm has advised on in the GCC region over the years, including eight IPOs in 2023 alone. Most recently, it acted as the joint bookrunner on Spinney’s IPO on the Dubai Financial Market (DFM), as well as Parkin’s IPO on the DFM – the most oversubscribed IPO on the DFM to date. The Firm also advised on the IPO of Dubai Taxi Company on the DFM and OQ Gas Networks on the Muscat Stock Exchange (MSX), the largest Omani IPO in over two decades. It also advised on the IPO of ADES Holding Company on the Saudi Exchange, as well as the successful IPOs of ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX); IPO of Lumi Rental Company on the Saudi Exchange; Abraj Energy Services on the MSX; and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).
