Saudi Arabia's SMC Hospitals Plans Riyadh IPO Amid Healthcare Sector Boom
SMC Hospitals, a leading healthcare provider in Saudi Arabia, is reportedly considering an initial public offering (IPO) on the Riyadh Stock Exchange. The move aligns with the Kingdom's broader strategy to privatize key sectors and boost its healthcare industry.
Sources close to the matter indicate that SMC is collaborating with investment banks SNB Capital and EFG Hermes on the potential offering. The size and timeline of the IPO are still under discussion, but it could be launched as early as the second quarter of 2023.
The healthcare sector is a high-priority area for Vision 2030, Saudi Arabia's ambitious economic diversification plan. Anticipating population growth and increased longevity, the government has encouraged private investment in healthcare.
Recent IPOs in the healthcare sector have met with success. Dr. Soliman Abdel Kader Fakeeh Hospital Co. raised $763 million in 2024, while Almoosa Health Co. raised $450 million. Both companies have experienced significant share price increases since their listings.
SMC Hospitals operates two hospitals in Riyadh and has plans for a third. It also maintains a network of over 250 outpatient clinics. The company has not commented on the potential IPO, and representatives for SNB and EFG Hermes declined to provide details.
The Saudi Public Investment Fund (PIF) is reportedly planning to list the Kingdom's largest medical procurement firm on the Riyadh Stock Exchange. These IPOs aim to diversify the Saudi stock market, which has traditionally been dominated by banking and petrochemical companies.