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Saudi hospital group Dr. Soliman Abdul Kader Fakeeh Hospital and its subsidiaries, together known as Fakeeh Care Group, which plans to sell a 21.5% stake in an IPO, said on Thursday it has signed cornerstone investment agreements with key UAE and Saudi investors.
Olayan Saudi Investment Co. and Abu Dhabi Investment Authority (ADIA) have committed to subscribe to 3 million shares in total at the offer price.
Earlier on Thursday, Fakeeh Care set the price range at between 53 riyals and 57.50 riyals ($29.46) per share and looks set to raise up to SAR 2.9 billion ($763 million). The company and the shareholders are selling 49.8 million shares in a mix of existing shares and newly issued shares.
At the top of the price range the commitments amount to $88.38 million.
Olayan has committed to subscribing 1.95 million shares representing 0.84% of the company’s share capital after the offering, while ADIA has committed to 1.04 million shares, representing 0.45%, said Fakeeh Care in a statement.
The institutional book building subscription period commences today and will close on 8 May. According to a Bloomberg News report that cited terms of the deal, investors snapped up all the shares as books were covered throughout the price range.
(Reporting by Brinda Darasha; editing by Seban Scaria)
