Saudi eyecare group Magrabi plans float, hires banks, sources say

Rothschild & Co SCA

24/11/2022 06:59

By Hadeel Al Sayegh
       DUBAI, Nov 24 (Reuters) - Saudi eyecare group Magrabi,
which runs one of the largest chains of optical retail stores
and eye clinics in the Middle East, is considering a flotation
of its hospitals business next year and has hired banks for the
deal, two sources familiar with the matter said. 
    Magrabi has mandated Rothschild & Co  ROTH.PA  as financial
advisor and HSBC  HSBA.L  as lead manager to run the initial
public offering (IPO), said the sources, who declined to be
named as the matter is not public.
    Magrabi and HSBC did not immediately respond to a request
for comment when contacted by Reuters on Wednesday. Rothschild
declined to comment.
    Saudi Arabia is encouraging more family-owned companies to
list in a bid to deepen its capital markets under reforms aimed
at reducing the kingdom's reliance on oil revenues. 
    The kingdom has had a surge in IPOs since it listed oil
giant Saudi Aramco (2222.SE) in a record $29.4 billion listing
in 2019.
    Saudi Arabia's Middle East Healthcare Company, the company
behind Saudi German Hospitals, raised $3.2 billion in 2019 when
it sold 30% of the company in an IPO. Nahdi Medical, one of the
largest pharmacy chains in the kingdom, raised $1.36 billion in
March from its public share sale.
    Founded in 1955 as an eye hospital in Jeddah, Magrabi runs
more than 32 hospitals across the Middle East, according to
information on its website. Magrabi says it was the first in the
Middle East to perform a corneal transplant surgery in 1968.
    Flush with cash from high oil prices, the Gulf region has
become a bright spot for global equity capital markets this
year, with government-led privatisation programmes leading to a
surge of public share sales. 
    Gulf issuers have raised around $16 billion this year,
accounting for about half of total IPO proceeds from Europe, the
Middle East, and Africa, according to data from Refinitiv.
 (Reporting by Hadeel Al Sayegh; Editing by Janane Venkatraman)
 ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))