Abu Dhabi’s NMC Health Raises $187 Million in London IPO

NMC Health Plc (NMC) raised 117 million pounds ($187 million) from an initial public offering, becoming the first Abu Dhabi-based company to trade shares on the premium segment of the London Stock Exchange.

NMC Health, a United Arab Emirates-based health-care provider, sold 55.7 million shares at 210 pence each, it said in a statement distributed via the Regulatory News Service today. “Conditional dealings” started today and full trading will commence April 5. The shares closed unchanged in London after climbing to 225 pence earlier.

“The pricing is good, and the management wanted to leave money on the table for investors to make a good value proposition even after it’s listed,” said Yazan Abdeen, who helps oversee about $250 million as a fund manager at ING Investment Management in Dubai. “We wouldn’t be surprised to see a rise in the price of the stock.”

The IPO comes after a decline in share sales by U.A.E. companies amid tumbling stock markets and political upheaval in the Middle East. Topaz Energy & Marine Plc, a Dubai-based oil and gas services provider, last year pulled an IPO in London, citing an “uncertain investment climate for new issues.”

NMC Health said March 8 it was seeking to raise as much as $250 million. The company said today based on the offer price, it will have a market value of about 390 million pounds.

“The funds we have raised will enable us to implement our exciting growth plans which include developing new and existing facilities and funding future growth opportunities,” Chief Executive Officer BR Shetty said in the statement today.

Deutsche Bank AG (DBK) was bookrunner and global coordinator of the sale, while Numis Securities Ltd. and Shuaa Capital PSC (SHUAA) were the lead managers.

NMC’s network includes three specialty hospitals in Abu Dhabi, Dubai and Al-Ain. The company last month said it plans to buy Healthcare Suites in Dubai, build a hospital at Khalifa City, Abu Dhabi, and look at potential acquisitions in the Middle East and North Africa as part of its expansion.

To contact the reporters on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net; Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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