UAE-based private healthcare service provider Burjeel Holdings has set a price range between AED 2.00 ($0.54) to AED 2.45 ($0.67) per share for its offer of approximately 550,729,221 shares. The company is offering a 11% stake in the IPO and will list shares on the Abu Dhabi Securities Exchange.

"The price range has been set between AED 2.00 to AED 2.45 per share, implying an equity value of $2.7 billion to $3.3 billion," Burjeel Holdings said in a statement.

The subscription period for the offering starts today (Friday) and runs until Tuesday, 4 October 2022 for both Retail and Professional Investors.

The final offer price will be determined through a book building process and is expected to be announced on 5 October 2022. Listing of Shares and trading on ADX is anticipated on Monday, 10 October 2022, Burjeel said.

“What we wanted to do with this IPO is to make the balance sheet stronger and make sure that our scale of plans are intact,” Chairman Shamsheer Vayalil told Bloomberg TV on Thursday.

The company has a network of 61 assets including 39 hospitals and clinics across the Middle East and India. Burjeel Holdings is expected to be the first privately-owned firm to go public in the UAE this year.

The Group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40% to 70% of net income, dependent on the required investment for additional growth plans, the statement said.

In September 2022 International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, announced its acquisition of a 15% stake in Burjeel Holdings.

(Reporting by Seban Scaria; editing by Brinda Darasha)