Burjeel Holdings IPO

• The Group focuses on attracting, training and developing the best and most innovative consultants to drive medical advancements in the MENA region, through a unique culture of “physician-led” practices.
• The Group’s strong clinical team has been responsible for the Group’s growth to date and remains committed to delivering quality and clinical excellence going forward.
• The Group has been developing highly specialised, complex and personalised services in oncology, orthopaedics and spine, woman care and paediatrics.

• The UAE and Oman healthcare markets benefit from strong fundamentals and growth drivers which support the Group’s expansion.
• The UAE and Oman increased their healthcare expenditure from U.S.$12.4 billion and U.S.$2.9 billion, respectively, in 2016, to U.S.$18.0 billion and U.S.$3.5 billion, respectively, in 2021. They are expected to further expand healthcare investments to U.S.$34.0 billion and U.S.$5.3 billion, respectively, by 2031.

• The Group has a private market leading position in the UAE in terms of volumes, with a total bed capacity of 1,660 beds as at 30 June 2022 and 4.8 million out-patients and 104,965 in-patients treated across its hospital network in 2021, representing a UAE private market in-patient market share as at 30 June 2021 of approximately 17 per cent.
• The Group’s integrated healthcare network serves patients in Abu Dhabi, Al Ain, Dubai & the Northern Emirates in the UAE, as well as Oman, across all healthcare segments and covers the full socio-economic spectrum through the Group’s four leading brands.

• The Group has a strong and well-invested medical services portfolio that is built around an integrated “hub and spoke” feeder network across primary, secondary and tertiary segments.

• The Group has a track record of strong financial performance and consistent growth that has been driven by its ramp-up of assets launched in recent years and supported by its focus on treating a higher-end patient mix and cost optimisation.
• For the years ended 31 December 2019, 2020 and 2021, the Group’s revenue was AED 2,420.5 million, AED 2,605.2 million and AED 3,351.0 million, respectively, representing a CAGR of 17.7 per cent.
• For the years ended 31 December 2019, 2020 and 2021, the Group’s EBITDA was AED 417.9 million, AED 470.2 million and AED 779.1 million, respectively, representing a CAGR of 36.5 per cent.

Burjeel Holdings is one of the leading regional private healthcare service providers in the UAE and Oman, operating as an integrated network across primary, secondary, tertiary and quaternary medical care services. It provides a comprehensive healthcare ecosystem to patients across the full socio-economic spectrum through its four key market leading brands, Burjeel, Medeor, LLH and Lifecare.

The Group consists of a fully-funded network of 16 hospitals, 23 medical centres (including polyclinics and specialty medical centres with dental, cosmetic, homecare services, a specialised orthopaedics centre and IVF centres) and 15 pharmacies, as well as seven entities conducting allied services such as central procurement (e.g., GPO), revenue cycle management, centralised diagnostics, central warehousing and patient valet parking services. Leveraging its clinical expertise and strengths in research and development, the Group will also provide medical education and research through its College of Medicine at Burjeel Medical City (BMC) , beginning in 2023.

Burjeel Holdings provides a comprehensive healthcare ecosystem to patients across the full socio-economic spectrum through its four key market leading brands, Burjeel, Medeor, LLH, Lifecare and Tajmeel.

Burjeel Holdings’ growth strategy is focused on a number of key areas:

• Ramping up of growth assets

The Group intends to increase patient volumes in its medium-growth and high-growth assets by increasing in-patient capacity utilisation, together with increased out-patient capacity utilisation offering a significant upside.

• Increasing patient yield

In addition to expanding the range of services provided at its medical facilities, the Group also intends to optimise the utilisation and revenue-generating capabilities of its existing services and facilities, thereby maximising patient yield. The Group will also continue to develop and enhance its complementary long-term care and rehabilitation services that are provided through Burjeel Darak and its central diagnostics and radiology services that are provided through Co-Lab.

• Operational excellence

The Group intends to continue to focus on enhancing its patients’ experience through the provision of personalised care underpinned by a strong digital backbone that optimises operational performance.The Group will continue to invest in its systems and controls, centralisation of services and upgrades of the digital capabilities to ensure that they drive best practice across its operations and support the continued delivery of high-quality services while also enhancing efficiencies and profitability.

• Geographic expansion

In addition to continued organic growth, over the next five years, the Group intends to expand its portfolio in the Middle East and Africa, and particularly the KSA, by entering into joint ventures, partnerships and similar arrangements with strong, local partners.

The Group has a track record of strong financial performance and consistent growth that has been driven by its ramp-up of assets launched in recent years and supported by its focus on treating a higher-end patient mix and cost optimisation.

For the years ended 31 December 2019, 2020 and 2021, the Group’s revenue was AED 2,420.5 million, AED 2,605.2 million and AED 3,351.0 million, respectively, representing a CAGR of 17.7 per cent. The growth in the Group’s revenue was organic and largely driven by the ramp-up of Burjeel Medical City (BMC), Burjeel Hospital, Abu Dhabi and Medeor Hospital, Abu Dhabi and supported by the focus on a higher-end patient mix, such as Thiqa patients at Burjeel facilities and middle-income patients at Medeor facilities.

For the years ended 31 December 2019, 2020 and 2021, the Group’s EBITDA was AED 417.9 million, AED 470.2 million and AED 779.1 million, respectively, representing a CAGR of 36.5 per cent.

For the six months ended 30 June 2022, the Group had revenue of AED 1,898.4 million, EBITDA of AED 414.2 million, and net profit of AED 152.9 million.

Burjeel Holdings has several competitive strengths that make it a compelling investment story, which are described in greater detail in the prospectus document, available on Burjeel Holdings’ IPO website.

Key Strengths

• Unique vision and strategy focused on quality and clinical excellence
• Large, attractive and resilient growth markets
• Leading healthcare services platform in the UAE with unmatched patient offering and diversification
• Highly scalable platform focused on operational excellence and sustainability
• Primed to deliver strong / predictable growth, recurring revenue and profitability

For further information and before making any investment decision, please read the Prospectus found on the IPO microsite including the “Investment Risks” section.

The Company’s ability to pay dividends is dependent on a number of factors and there is no assurance the company will be able to pay dividends or, if a dividend is paid, what the amount of such dividend will be.

Subject to the paragraph above, the Company 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 required investment for additional growth plans. In the absence of any attractive investment opportunities that meet the Group’s investment criteria and return thresholds, the Group will distribute dividends at the upper end of the pay-out ratio range or potentially higher. The first interim dividend is expected to be paid in the second half of 2023 on the basis of net income for the first half of 2023. Any dividends are expected to be paid in cash. Please see the Prospectus for further detail.

The Company intends to use the net proceeds from the issue of the New Shares for general corporate purposes.

In addition, the Company intends to use a portion of the proceeds from the sale of the New Shares and approximately AED 247.0 million of the proceeds from the sale of the Sale Shares (which amount will be remitted by the Lead Receiving Bank to the Company on the Listing Date in settlement of the Selling Shareholder Payable) to pay certain of the Group’s outstanding indebtedness.

Any remaining net proceeds from the sale of the Sale Shares by the Selling Shareholder after the settlement of the Selling Shareholder Payable will be for the sole benefit of the Selling Shareholder. The Offering will provide the Selling Shareholder with an opportunity for a partial realisation of its shareholding in the Company.

The offering comprises up to 550,729,221 shares split into two tranches.

The First Tranche of the offering, comprising 10% of the offer, will be open to individual subscribers and other investors who do not qualify as Professional Investors. A NIN with ADX and bank account number in the UAE is required for applying for shares.

The Second Tranche of the offering, comprising 90% of the offer, will be open to Professional Investors. A NIN with ADX is required however a bank account in the UAE is not required.

Subscriptions will open on 30 September 2022, with First and Second Tranche Investor subscriptions closing on 4 October 2022. The final offer price announcement is expected to be made on 5 October 2022.

Please visit the dedicated section on the Burjeel Holdings IPO webpage ‘How to Subscribe’ for information on how to apply for shares through the receiving banks or ADX ePortal.

A NIN is an investor identification number that is used by ADX through which all transaction on the exchange can be initiated included clearing, settlement and trading transaction. All subscribers to the IPO required a NIN to apply for shares.

How do I create an investor number (NIN) to subscribe to the IPO?

Investors can apply for the issuance of an investor number on Abu Dhabi Securities Exchange through one of the following service channels:

• SAHMI digital platform (for Emirates ID card holders with UAE Pass)
• Accredited Brokerage Firms
• Customer service offices at all branches of the Abu Dhabi Securities Exchange.

The following documents are required to issue a NIN:

Individuals:

• Original Emirates ID card. (For UAE citizens and residents holding Emirates identity)
• Passport and ID card from the country of residence for foreigners not residing in the Emirates and an International Bank Account Number (IBAN) letter, providing that the bank account is solely in the name of the applicant and not a joint bank account

Companies:

• A valid trade license copy (original for review )
• Company incorporation contract
• Company’s Board of Director members list for the last certified/audited period
• A Letter with the list of all authorized signatories
• International Bank Account Number (IBAN) letter

Investment Portfolios:

• Letter of Approval issued by the Central Bank of the United Arab Emirates to start portfolio activity
• A copy of the commercial license of the issuer of the portfolio (original for review )
• List of names and signatures of authorised people from the portfolio, with clarification of powers
• Portfolio Prospectus
• International Bank Account Number (IBAN) letter

Free Zones:

• A copy of the free zone license (original for review)
• A list of the company’s board members for the last certified period
• A letter with the list of authorised signatories
• International Bank Account Number (IBAN) letter

For more information please visit www.adx.ae

For eligible First Tranche investors, First Abu Dhabi Bank PJSC has been appointed as the lead receiving bank.  

For eligible Second Tranche investors, orders have to be submitted through the Lead Manager, Dubai Islamic Bank PJSC. 

• Eligible Investors can place orders with the Lead Manager using the subscription form or the link sent by the Lead Manager. 

• The Lead Manager will collect the Order Forms accompanying documents, Eligible Investor’s NIN, and funds from Eligible Investors and share the orders details to the Lead Receiving Bank during the subscription period.  

• Allocation will be decided by the Company in accordance with the Allocation Policy set out in this Prospectus and communicated to the Lead Receiving Bank. 

• The Lead Manager, will collect the funds, as required, from each Eligible Investor who has placed an order during the Subscription Period. 

• Once the allocation of shares has been finalised and communicated to the Lead Manager for the subscription orders received by them, the Lead Manager will transfer the allocated capital funds to the Lead Receiving Bank as a single payment.