Saudi Arabia's Sulaiman Al Habib Medical Group enters MSCI Global Standard Index

Being included in the index will help bolster the profile and visibility of HMG's growth to international investors

  
Image used for illustrative purpose Nurses walk in the emergency department at Al-Noor Specialist Hospital in Mecca .

Image used for illustrative purpose Nurses walk in the emergency department at Al-Noor Specialist Hospital in Mecca .

REUTERS/Muhammad Hamed

Saudi Arabia’s largest private medical services provider, Dr. Sulaiman Al Habib Medical Group (HMG), will be included as a constituent of the MSCI Global Standard Index, effective 30 November 2020, according to the MSCI semi-annual Index Review.

MSCI is the world’s provider of research-based indexes that cover securities from different countries and across cap sizes. The indices are a benchmark in global equity markets and are constituent stocks are selected based on criteria including market capitalisation, liquidity, free float and performance.

Dr. Sulaiman Al Habib Medical Group operates hospitals, outpatient clinics, pharmacies and medical labs throughout the kingdom as well as in Dubai and Bahrain. The group raised $700.9 million (main market) by issuing 15 per cent of its shares in February.

Nasser Al Haqbani, CEO at HMG, said: "The inclusion of HMG in the MSCI Global Standard Index is a reflection of both the resonance and impact of our post-IPO growth strategy, which we have delivered in spite of market headwinds. Our business has proved highly agile in addressing the challenges of the global pandemic, and we are very pleased to have become a constituent of the globally recognised benchmark."

Being included in the index will help bolster the profile and visibility of HMG’s growth to international investors, supports liquidity, and broadens shareholder base.

According to a statement from the group, HMG’s growth strategy is focused on growing the scale of the Group’s facilities including the South West Jeddah Hospital,which is expected to start operations at the end of 2023; the North Riyadh hospital, which will start operations at the end of 2023; and the North Jeddah Hospital for which construction is scheduled to begin in 2021, with a projected completion date at the end of 2024.

The latest addition to HMG’s project pipeline is the Takhassusi Pediatric & Maternity Hospital in Riyadh, which has completed its design phase and is expected to be operational by 2024, the statement said.

(Writing by Seban Scaria seban.scaria@refinitiv.com; editing by Daniel Luiz)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Equities