Discuss of a possible itemizing for Burjeel Holdings comes because the Emirates advantages from a Center East IPO growth, with Abu Dhabi and Dubai taking a number of authorities entities public this yr.
Bloomberg | Bloomberg | Getty Pictures
DUBAI, United Arab Emirates — Indian billionaire Shamsheer Vayalil is accelerating plans to take Burjeel Holdings public after the Emirates-based hospital group posted report full-year revenues and revenue.
Burjeel Holdings, which operates 16 hospitals, 23 medical facilities and 15 pharmacies within the UAE and Oman, reported report full-year 2021 income of three.35 billion UAE dirhams ($912m) and a revenue for the yr of 234 million UAE dirhams, in accordance with a press release launched Thursday.
Burjeel stated it reported EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) of 779 million UAE dirhams within the 12 months by means of to Dec. 31 final yr.
The figures, audited by EY, supply the primary look into the efficiency of the hospital group wholly owned by Vayalil — a radiologist who began with a single hospital in 2007.
Burjeel, a by-product of his VPS Healthcare enterprise, now employs greater than 1,200 docs and its portfolio of property contains Burjeel Medical Metropolis in Abu Dhabi, one of many largest personal hospitals within the nation.
“We’re wanting on the subsequent section of progress,” Vayalil instructed CNBC because the potential itemizing plans take form.
Burjeel has appointed JP Morgan, Emirates NBD, EFG-Hermes, and Dubai Islamic Financial institution as joint international coordinators for the itemizing, presumably on the Abu Dhabi bourse, as quickly as this yr.
Burjeel stated discussions a couple of transaction had been ongoing and particulars on the scale of the supply and valuation are below evaluation. A remaining determination has not been made.
Well being test
Any itemizing can be a big take a look at of investor urge for food within the sector following the collapse of NMC Well being, as soon as touted as the biggest personal healthcare firm within the UAE. NMC was the primary firm from Abu Dhabi to record on the London Inventory Trade, however delisted in April 2020 and restructured after an alleged fraud that exposed billions in undisclosed money owed.
NMC directors took authorized motion towards EY for alleged negligence in auditing the enterprise earlier than the collapse. EY denies any wrongdoing.
Discuss of a possible itemizing comes because the Emirates advantages from a Center East IPO growth, with Abu Dhabi and Dubai taking a number of authorities entities public this yr. A Burjeel Holdings itemizing, if profitable, would mark a uncommon milestone as the primary privately held enterprise to go public within the current authorities itemizing wave.
“The macroeconomics for us are proper, and until one thing adjustments drastically that isn’t in our fingers, we really feel very optimistic about what we’re doing, and we’re assured that our story is correct,” Vayalil stated.
Focusing on scale
“Healthcare is a fundamental want, and that want goes to develop,” Vayalil stated, describing Burjeel Holdings as “match for scale” with operations focusing on a number of socio-economic demographics throughout its 5 manufacturers, together with Burjeel Hospitals, Medeor Hospital, LLH Hospital, Lifecare Hospital, and Tajmeel — a medical middle operator.
Vayalil stated he plans to deal with service growth within the UAE, the place Burjeel already has a 17% inpatient market share, and would additionally goal what he sees as rising demand for medical tourism within the nation.
“What now we have to construct is extra belief for folks to consider that this place can supply what is offered wherever on this planet,” Vayalil stated. “If we will cease or cut back folks touring about for remedy, that’s one parameter that I deal with,” he added.
