Saudi Arabia’s Almoosa Health IPO

The interest in the listed shares of Almoosa Health, one of Saudi Arabia’s leading healthcare companies, has attracted particular attention amid the decline. The company’s initial public offering (IPO) on the Saudi Tadawul Stock Exchange was a high-profile event, as institutional demand for shares reduced the supply by 102 times. The total volume of applications for Almoosa Health shares amounted to SR173 billion ($46 billion), which is much higher than the volume of shares submitted at SR1.69 billion ($450 million).

Reasons for the massive interest in the Almoosa Health IPO

One of the main factors that made the Almoosa IPO so sought after was the resilience of the healthcare sector, which has traditionally been attractive for long-term investment, especially in economically stable countries such as Saudi Arabia.
Almoosa Health operates modern, multidisciplinary healthcare facilities, providing a wide range of services and ensuring high-quality care. Given the global trend of rising medical costs and increased attention to healthcare, the company entered the market with a multidisciplinary profile that has attracted institutions and is likely to attract interest from private investors as well.

IPO details: what can private investors expect?

After the overwhelming success of the institutional bids, it will be interesting to see how the next stage of the IPO goes. The bids from private investors are scheduled for December 23-24, 2024. The final distribution of shares among participants will take place on December 29, and trading on the Tadawul exchange will begin next year.
For comparison, the Almoosa Health IPO could be the second-largest share placement in Saudi Arabia in 2024, second only to Fakeeh. Recall that the Fakeeh medical group managed to raise 2.86 billion riyals ($763 million) earlier this year. It is already clear that the healthcare sector in the region is in high demand among investors, which is confirmed by the excitement around Almoosa.

The Importance of IPO for the Market and the Economy

The resonance of the Almoosa Health IPO can be seen in the context of the overall economic development of Saudi Arabia. Economic diversification programs, such as «Vision 2030», are aimed at reducing the country’s dependence on oil and developing more sustainable industries. One of the key areas of investment has been the healthcare sector — Almoosa Health’s achievements confirm the relevance of this area.
Moreover, such a high level of demand for the IPO signals an increase in the interest of international and local investors in the regional financial market. This helps strengthen Saudi Arabia as a global hub for raising capital and creates new opportunities for private companies.
The Almoosa Health IPO was a shining example of the potential of the medical sector to attract capital. The success of the share placement not only attracted attention to the company, but also strengthened the position of the Saudi stock market on the global stage. It remains to be seen how the shares will perform in trading and whether they will live up to such high expectations of investors, be they institutional or private players.