On January 6, 2025, the Saudi Exchange announced that shares of Almoosa Health Co.(4018.SA) will be listed and begin trading on the Main Market starting January 7, 2025. The company's stock will be identified by the symbol 4018 and ISIN Code SA1661VHUP11. 

Initially, the stock will be subject to daily price fluctuation limits of +/- 30% and static price fluctuation limits of +/- 10% for the first three days of trading. After this period, starting on the fourth day, the daily price fluctuation limit will return to +/- 10%, while the static price fluctuation limit will no longer apply.

Additionally, the Securities Depository Center Company (Edaa) has confirmed that the securities of Almoosa Health Co. have been deposited into the accounts of eligible securities holders on January 6, 2025 (06/07/1446H).

Almoosa Health IPO Overview

1. Key Offering Details

• Capital Market Authority (CMA) Approval:
  Approved on September 30, 2024, for the registration and offering of 13,291,074 Ordinary Shares.
• Offer Composition:
  • New Shares: 9,303,580 shares, representing 21% of the total share capital post-offering.
  • Sale Shares: 3,987,494 shares sold by Selling Shareholders, representing 9% of the total share capital post-offering.
  • Combined, these shares represent 30% of the Company's total share capital after the capital increase.

2. Offering Results

• Total Shares Offered: 13.29 million shares (30% of post-IPO capital)
  • 80% allocated to institutional investors
  • 20% allocated to retail investors
• Final Offer Price: SAR 127 per share
  • Implied market capitalization at listing: SAR 5.63 billion
• Institutional Book-Building:
  • Order book size: Approximately SAR 173 billion
  • Oversubscription: 103 times
• Retail Subscription (Dec 23-24, 2024):
  • Number of individual investors: 395,986
  • Retail oversubscription rate: 408.71%
  • Total retail demand: SAR 1.4 billion
• Allocation for Retail Investors:
  • Minimum allocation: 6 shares per investor
  • Remaining shares allocated pro-rata based on individual demand
  • Average allocation factor: 3.33%

Key Investment Highlights and Strategic Plans

1. Macroeconomic Support for Saudi Healthcare Sector Growth

• Saudi Arabia’s long-term economic outlook is strong, underpinned by Vision 2030 and strategic economic diversification initiatives.
• The Saudi healthcare market is projected to grow at a 6.5% Compound Annual Growth Rate (CAGR) from 2023 to 2030, reaching SAR 360 billion. Private sector contribution is expected to rise from 18% in 2023 to 25% by 2030.
• The 60+ age group in Saudi Arabia is expected to grow at a CAGR of 10% between 2022 and 2030, significantly outpacing overall population growth.
• The Eastern Province, where Almoosa Health operates, is poised to see increased demand for healthcare due to its role as a hub for energy, petrochemicals, and mining.

2. Comprehensive Healthcare Services

• Almoosa Health is a leading integrated healthcare provider offering services across Primary, Acute Care, Rehabilitation, and Extended Care.
• Plans to open five standalone primary healthcare centres by 2027, offering nine specializations.
• Almoosa plans to expand its multispecialty infrastructure by adding two new hospitals: one in Al Hofuf (300 beds) by 2027 and one in Khobar (400 beds) by 2028. The Eastern Province currently has 2.5 beds per 1,000 people, below the OECD average of 3.2.

Hospitals’ Operational Information by March 2024

3. Innovative and Integrated Care Model

• Almoosa employs a patient-centric, efficient, and scalable ‘hub and spoke’ model that integrates primary, acute, and rehabilitation care.
• The Company utilizes modern technologies and innovative care management strategies to enhance patient satisfaction and outcomes.
• Patients benefit from a seamless healthcare experience across the Almoosa ecosystem, including home healthcare and telemedicine.

4. State-of-the-Art Healthcare Technology

• Almoosa Specialist Hospital in Al-Ahsa uses advanced technology to improve patient engagement and decision-making.
• The Company employs innovative health IT solutions such as Health Information Systems (HIS) and Yasassii, which streamline patient information management.
• Achieved HIMSS Stage 7 Accreditation, reflecting advanced technology adoption.
• Advanced Medical Equipment includes:
  • Tesla 3 MRI for high-resolution imaging.
  • Hybrid Operating Rooms for complex surgeries.
  • Automated Systems in labs and pharmacies to enhance workflow efficiency.

5. Strong Financial Performance and Growth Plans

• Almoosa’s revenue grew at a CAGR of 18.1% from 2021 to 2023, reaching SAR 979 million in 2023 and SAR 870 million for 9M 2024.
• EBITDA growth outpaced revenue, expanding at a CAGR of 37%, driven by workforce optimization and expansion of clinical services.
• EBITDA margin improved from 15.8% in 2022 to 20.0% in 2023.
• Net income grew at a CAGR of 25.4% from 2021 to 2023, reaching SAR 98.1 million in 2023.

6. Strategic Expansion Plans

• Almoosa plans to add 700 beds by 2028, reaching a total of 1,430 beds across four hospitals and five primary care centres.
• New hospitals include Al Moosa Specialist Hospital in Al Hofuf (300 beds, 200 clinics) by 2027 and Al Moosa Specialist Hospital in Al Khobar (400 beds, 300 clinics) by 2028.
• Five primary care centres will be established across Al Ahsa, Al Khobar, and Dammam between 2025 and 2027.
• Land acquisition and excavation have already begun for the new hospitals in Al Khobar and Al Hofuf.

Company’s Future Projects

7. Founder-Led Business with Strong Leadership

• Almoosa Health is led by CEO Mr. Malik Almoosa and supported by a management team with an average industry experience of 25 years.
• The Board, headed by Founder and Chairman Mr. Abdulaziz Almoosa, has a strong track record of clinical excellence and a deep understanding of the Saudi healthcare sector.

8. Capital Structure and Dividend Policy

• Post-IPO, Almoosa’s share capital will total SAR 443,035,800, divided into 44,303,580 ordinary shares.
• The Company plans to distribute annual dividends, subject to approval by shareholders and based on various factors, including profits, cash flows, and market conditions.
• Recent dividends included SAR 48 million for FY 2021, SAR 94 million for FY 2023, and SAR 27 million for Q1 2024. No dividends were paid for FY 2022.

Substantial Shareholders of the Company Pre- and Post Offering

Source: The Company

For those who are interested to read more, please read the full prospectus here.

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- Reporting by Zaid, Sahm News team