PureHealth shares rally 76% on Abu Dhabi stock market debut

Shares closed at Dh5.74 against an initial public offering (IPO) set at Dh3.26 per share

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Ashwani Kumar

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PureHealth and ADX officials ring the bell at the healthcare platform's listing on Wednesday. — Supplied photo
PureHealth and ADX officials ring the bell at the healthcare platform's listing on Wednesday. — Supplied photo

Published: Wed 20 Dec 2023, 3:57 PM

Last updated: Wed 20 Dec 2023, 9:08 PM

The shares of Abu Dhabi-headquartered PureHealth made a bumper debut on the Abu Dhabi Securities Exchange (ADX) on Wednesday.

Shares opened at Dh5.5 against an initial public offering (IPO) set at Dh3.26 per share. They closed the day at Dh5.74, an increase of 76.07 per cent. A total of 39,148,206 shares changed hands during the day, at a value of Dh218,768,371.

PureHealth, the largest healthcare platform in the Middle East, offered 1.11 billion shares representing 10 per cent of its share capital worth Dh3.62 billion. Its subscription process witnessed “staggering demand” from investors in the UAE and the region.

The professional subscribers’ tranche attracted a demand of Dh186 billion reflecting an oversubscription level of 54 times. Meanwhile, the retail offering witnessed tremendous appetite from investors, accumulating demand over Dh78 billion, marking an oversubscription level of 483 times.

During the subscription period, PureHealth attracted orders worth more than Dh265 billion dirhams.

A day before the market debut, the company named co-founder and group chief operating officer Shaista Asifas the new chief executive. Under the new structure, PureHealth co-founder Farhan Malik has been appointed as the managing director.

Abdulla Salem Alnuaimi, chief executive officer of ADX, said: "We warmly welcome PureHealth to the ADX family and look forward to their invaluable contribution towards the healthcare services sector in the UAE and beyond. This year, we have witnessed strong investors’ interest and participation towards the various dynamic listings and initiatives on the ADX platform. We aim to continuously strengthen our market infrastructure and trading offerings and investment services to enable more local and global companies to achieve their capital raising and investment ambitions. At ADX, we are committed to fulfilling Abu Dhabi’s economic strategy and expanding the sustainable growth and development of capital markets in the UAE and wider Middle East region”.

PureHealth joins a growing group of both local and global healthcare service providers on ADX, demonstrating the Exchange's role as a hub for healthcare investments and providing opportunities for the exchange’s investors to further diversify their portfolios. The company’s global footprint in the United States and the United Kingdom reflects the growing internationalization of ADX and highlights ADX’s active role in augmenting Abu Dhabi’s economic growth and diversification.

Farhan Malik, founder and managing director of PureHealth said: "PureHealth’s listing on ADX has surpassed IPO records on the exchange, making this a significant milestone in our journey. As the largest integrated healthcare platform in the Middle East, we are proud of the role we continue to play in shaping the healthcare sector for Abu Dhabi and beyond. We will continue to transform healthcare, in line with the vision of Abu Dhabi’s leadership, together delivering accessible, world-class healthcare backed by the latest in AI technology and supported by continued public and private sector collaboration. PureHealth is now becoming into a healthcare equity platform where our focus will be on international expansion. This listing will further support our equity growth story by enabling us in taking the organization from Abu Dhabi to the World.”

PureHealth IPO rounds out a strong year for ADX. Some notable listings in 2023 include the largest-ever IPO on ADX of ADNOC Gas at $2.5 billion, ADIB’s world’s first Dollar-denominated sukuk with $500 million value of issuance, the IPO of Presight AI at approximately $496 million, to name a few.

PureHealth has been on a journey of consolidation and growth over the past years. Its diverse portfolio includes over 25 hospitals, 100 clinics, multiple diagnostic centres, health insurance solutions, pharmacies, health tech, and procurement. PureHealth is also actively expanding its presence globally including the recent acquisition of a 100 per cent stake in Circle Health Group, the UK’s largest independent operator of hospitals. In May, PureHealth completed its acquisition of Ardent Health Services, which is the US’ fourth largest private healthcare group, becoming the only Middle East-based healthcare provider to directly acquire assets in US hospitals and clinics.

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