EFG Hermes concludes advisory on HMG’s $700mln IPO on Tadawul

The transaction saw the group offer 52.5 million shares (representing 15% of its share capital) to investors at SAR 50 per share

  
An Egyptian man walks past a branch of the EFG Hermes investment bank in Cairo, Egypt May 29, 2018. Image used for illustrative purpose.

An Egyptian man walks past a branch of the EFG Hermes investment bank in Cairo, Egypt May 29, 2018. Image used for illustrative purpose.

REUTERS/Amr Abdallah Dalsh

EFG Hermes announced that its investment banking team has completed advisory on Dr Sulaiman Al Habib Group’s (HMG) SAR 2.63bn ($700m) IPO on Tadawul, with EFG Hermes acting as joint bookrunner on the deal.

HMG began trading on Tuesday, March 17th under the Bloomberg stock symbol “SULAIMAN AB Equity”. The transaction saw the group offer 52.5 million shares (representing 15% of its share capital) to investors at SAR 50 per share.

HMG, one of the largest private healthcare operators in Saudi Arabia, has operations across the country, the UAE and Bahrain. The group currently owns and operates seven healthcare facilities and thirteen pharmacies, while operating and managing another seven healthcare centres, and provides a range of medical and technical services.

“Taking Dr Sulaiman Al Habib Group to market bookends a series of successful deals we have managed to execute in Saudi Arabia,” said Mohamed Ebied, Co-CEO of the Investment Bank at EFG Hermes. “In light of the current global equity market conditions, the successful close of this transaction and the stock’s strong performance on the first day of trading (up 10%), underscore both the strong fundamentals of HMG and our ability to attract global capital and funnel it into local investment opportunities through unmatched book-building and advisory services.”

Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes commented: “Despite bearish sentiment the world over in response to the impact that the recent COVID-19 outbreak has had on global markets’ growth, we remain confident that the strong fundamentals that underpin Saudi Arabia and FEM markets, in general, will continue to drive economic growth across the region. Investors will continue to peg defensive sectors such as healthcare and consumer goods as overweight, and Saudi Arabia’s commitment to implementing wide-ranging reforms is likely to support a healthy pickup in non-oil economic activity. Given our strengthened presence in the country, we are ideally positioned to capture a significant share of rising transaction volumes expected for the coming period.”

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