(Dec 17): Saudi Arabia’s Almoosa drew 173 billion riyals (RM205.30 billion) worth of orders from institutional investors for its US$450 million (RM2 billion) initial public offering in the kingdom, in a sign of continued interest in Middle Eastern listings.

The healthcare provider announced a final price range of 127 riyals per share, the top of a marketed range, it said in an announcement on Tuesday.

Almoosa is offering 13.3 million shares, or a 30% stake. At this price, the firm would be valued at 5.62 billion riyals, with the deal on track to be the kingdom’s second largest listing of the year.

Almoosa is the latest Middle Eastern listing to garner triple-digit levels of oversubscription, although of late this has not necessarily translated to strong trading performance.

Health care is a key focus of Crown Prince Mohammed Salman’s trillion-dollar Vision 2030 plan, which foresees a growth in the country’s population and a rise in life expectancy. The kingdom has seen a string of listings in the sector, including Middle East Pharmaceutical Co and Dr Soliman Abdel Kader Fakeeh Hospital Co.

Fakeeh’s US$763 million IPO was Riyadh’s largest listing of the year and also drew a bumper order book. Despite a disappointing start, the stock has climbed since the offer.

The Saudi wealth fund is planning to list Nupco, the kingdom’s largest medical procurement firm, Bloomberg News has reported.

The Company for Cooperative Insurance, known as Tawuniya, and Alfozan Holding Company have agreed to subscribe to around 22% of Almoosa’s offering and will collectively own close to 6.6% of the company post-IPO, it previously stated.

Retail subscriptions will run from Dec 23 to Dec 24, with final allocations due on Dec 29.

Almoosa is working with EFG Hermes, Saudi Fransi Capital and Moelis & Co on the deal.

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