Abraaj said to seek up to $300m value in Egypt health IPO

04/05/2016 20:55 AST

Buyout firm Abraaj Group is seeking a valuation of as much as $300 million (Dh1.1 billion) for a group of hospitals it plans to list on the Egyptian stock exchange, according to two people familiar with the matter.

An initial public offering for Cleopatra Hospital Co, which includes four private hospitals in the North African country, may take place as soon as this month, the people said, asking not to be identified as the information is private. The Egyptian regulator has approved the listing, one of the people said.

Abraaj plans to retain a stake in the business following the IPO, and Egyptian investment bank EFG-Hermes Holding SAE is managing the sale, they said. Demand for specialised health care is increasing in Egypt amid a growing population and a shortage of public services. Private equity firms, such as Abraaj and London-based Actis LLP, have been actively scouting for deals in the sector to take advantage of the shortfall.

Abraaj, which manages about $9.5 billion in assets, has made 28 investments in the health care industry globally, deploying more than $1 billion, according to information on its website. The company is also pursuing an IPO of Jordanian aircraft maintenance firm Jordan Aircraft Maintenance Ltd on the Nasdaq Dubai stock exchange, people familiar with the matter said in April.

A representative for Abraaj declined to comment. A representative for EFG-Hermes didn’t immediately respond to requests for comment.

Abraaj Group has exited its investment in Tunisia’s second largest pharmaceutical company Unimed through an initial public offering (IPO) on the Tunis Stock Exchange, the Dubai-based private equity investor said on Wednesday. Unimed’s IPO was priced at 11.8 Tunisian dinars a share, and was oversubscribed by 32.6 times, Abraaj said in an emailed statement.

Unimed specialises in sterile dosage forms, such as intravenous solutions, and ophthalmic products for global companies including Pfizer and Mylan.

Abraaj and its partner French development agency Proparco reduced their stake ahead of Unimed’s IPO through a partial sale to a consortium of investors, Abraaj said in December.

The consortium of investors included Washington-based SQM, Blakeney Asset Management and the Tunisian-Kuwaiti Consortium of Development.

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