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Al Noor Plans to Raise $150 Million in IPO, Seeks LSE Listing

Al Noor Hospitals Group Plc plans to raise $150 million from an initial public offering as the Abu Dhabi-based health-care provider seeks to list on the London Stock Exchange. (LSE)

The company plans to use proceeds from the IPO to finance acquisitions and repay debt, it said in an e-mailed statement today. Deutsche Bank AG, Goldman Sachs Group Inc. and HSBC Holdings Plc (HSBA) are managing the deal, while Rothschild is serving as financial adviser, Al Noor said.

“There are strong trends driving the demand for health care in the U.A.E. and Abu Dhabi in particular,” Al Noor Chief Executive Officer Kassem Alom said in the statement. “An IPO will provide Al Noor with the capital to meet these demands.”

Shares of Abu Dhabi-based NMC Health Plc (NMC), which last year raised 117 million pounds ($177 million) in an IPO to list on the LSE, have surged 52 percent in 2013, outpacing a 33 percent advance for Abu Dhabi’s benchmark stock index. Al Noor has the biggest market share among private health-care services providers in the United Arab Emirates’ capital for both outpatients and inpatients, the company said. Profit last year climbed 19 percent to $60.5 million, while revenue increased to $324.4 million from $292.9 million a year earlier.

Solid Company

Al Noor “is a solid company with solid market share in Abu Dhabi and is in a great and growing sector which most investors want to have exposure to,” Fadi Al Said, senior fund manager at ING Investment Management in Dubai, said by e-mail. “I hoped it was a local listing as local markets need diversity.”

The U.A.E.’s stock markets are soaring amid an economic recovery after the global credit crisis and political upheaval in the Middle East curbed the demand for riskier assets. Abu Dhabi’s benchmark index is the ninth-best performing index among 94 tracked by Bloomberg globally, while Dubai’s DFM General Index is the third.

Al Noor said the IPO, which is expected to have a free float of 30 percent to 45 percent, will include new stock as well as a partial sale of shares held by some of its holders. The IPO will be offered to institutional investors.

The company also agreed on the terms of an $81.7-million working capital, capital spending and acquisition facility, it said. It has identified a specialty center and a group of medical facilities for potential acquisitions of about $50 million, according to today’s statement. Al Noor will use cash in hand and $75 million of IPO proceeds to repay a loan of about $118.1 million.

The company plans to meet with investors in about two weeks and hasn’t set a date for the listing, Chief Strategy Officer Sami Alom said during a conference call today.

To contact the reporters on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net; Sherine El Madany in Dubai at selmadany@bloomberg.net

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

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