March 29, 2016
The Law Office of Salman M. Al-Sudairi in association with Latham & Watkins LLP advised the Middle East Healthcare Company (MEAHCO) on the US$480 million (SAR1.8 billion) initial public offering (IPO) of 30 percent (%) of its shares at an offer price of SAR64 per share, and the listing of its shares on the Saudi Stock Exchange (Tadawul). The book building process generated an order book of around SAR10.5 billion and resulted in a subscription by institutional investors of 593.7 percent of the total offered shares while the retail subscription by individual investors was 274% oversubscribed.
MEAHCO is one of the leading healthcare service providers in Saudi Arabia and owner of the brand name “Saudi German Hospital”. It currently owns and operates four major hospitals in four of the major cities in Saudi Arabia (Riyadh, Jeddah, Madinah and Aseer) and is in the process of developing two additional hospitals to serve two other main cities (Dammam and Hail). The IPO of MEAHCO is the first in 2016 in Saudi Arabia and is considered the largest IPO to take place in Saudi Arabia by a healthcare service provider.
The Latham & Watkins team was led by partners Sami Al-Louzi and Salman Al-Sudairi, with associates Ibrahim Soumrany, Omar Maayeh, Raya Al-Khatib, and Najla Al-Gadi.
Al-Sudairi commented: “We are delighted to have advised MEAHCO and its shareholders on this milestone transaction which is the culmination of a long journey. We are honoured to be a part of this landmark deal from the early stages.”
Al-Louzi added: “This IPO is a reflection of Latham’s strong capital markets practice in Saudi Arabia and reinforces the firm’s position in the market.”
In addition to advising on the IPO of MEAHCO, Latham has worked on the many of the highest profile IPO and rights issue transactions in Saudi Arabia over the past 16 months, including the IPO of the National Commercial Bank with a value of around US$ 6 billion (SAR 22.5 billion), the rights issue of the Saudi Arabian Mining Company (Ma’aden) with a value of US$ 1.5 billion (SAR 5.6 billion), and the IPO of Alandalus Property with value of US$ 100.8 million (SAR 378 million).