Watch: Abu Dhabi's Burjeel Holdings jump 20% on ADX debut

Shares of Burjeel Holdings soared 20 per cent higher than the issue price during the healthcare group’s debut on the Abu Dhabi Securities Exchange (ADX).

Dr Shamsheer Vayalil, Burjeel Holdings founder and chairman, celebrated the listing of shares with an official bell ringing ceremony on Monday.

Shares of the Abu Dhabi-based group were priced at Dh2, implying a market capitalisation of Dh10.4 billion at the time of listing. Shares, which began trading at 10 am under the ticker symbol ‘BURJEEL’, jumped to Dh2.31 in the opening minutes, hit a high of Dh2.40 and closed at Dh2.31 with a market capitalisation of Dh12.02 billion.

Burjeel Holdings, which is one of the largest private healthcare service providers in the Mena region, has successfully completed its initial public offering (IPO).

The IPO raised gross proceeds of more than Dh1.1 billion for the offering of 11 per cent of the company’s total issued share capital. The IPO attracted total gross demand of more than Dh32 billion and was 29 times oversubscribed in aggregate.

Burjeel Holdings is the largest healthcare company trading on ADX. It is also the first private sector company to go public in the UAE this year.

The group intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40 to 70 per cent of net income, dependent on the required investment for additional growth plans.

With a successful IPO, Burjeel Holdings, enters a new era of entrepreneurship in the healthcare sector.

Hisham Khalid Malak, Chairman, ADX, said: “We congratulate Burjeel Holdings on its successful IPO and welcome it to the ADX platform. Burjeel Holdings is an example of how entrepreneurs and companies with a clear vision and commitment to excellence can rise to become leading publicly listed companies. ADX is proud of the role it continues to play in the UAE’s economic diversification efforts, providing companies a platform to reach global investors in a diverse capital market ecosystem.”

Dr Vayalil noted that the ADX debut was a result of years of dedication and commitment on a journey, which started in 2007 with the opening of LLH Hospital in Abu Dhabi.

“Our IPO demonstrates our commitment to helping grow the UAE’s capital markets ecosystem through expanding the UAE economy and private sector, further cementing Abu Dhabi’s role as an attractive destination for investment. That we are here today is testament to the immense passion, perseverance and dedication of our people who, collectively, have built Burjeel Holdings into one of the Mena region’s leading healthcare providers and the largest healthcare company on ADX.”

Currently, Burjeel Holdings operates an integrated healthcare network of 61 assets, including 16 hospitals and 23 medical centres across primary, secondary, tertiary and quaternary care, with its expansion into Saudi Arabia commencing shortly.

Upon listing, VPS Healthcare Holdings continues to own a majority 70 per cent stake in the company. In September, International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, announced its acquisition of a 15 per cent stake in Burjeel Holdings in order to scale and diversify its local and regional healthcare investments.

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