Abu Dhabi, UAE – Abu Dhabi-headquartered Burjeel Holdings PLC, which listed 11 percent of its share capital on the main market of the Abu Dhabi Securities Exchange (ADX), is planning to use the net proceeds from new shares mainly for further expansion in the UAE, Oman and Saudi Arabia, the company’s top executive told the Emirates News Agency (WAM).
“We intend to use the net proceeds from the issue of new shares to add further stability to our balance sheet and to deliver on our strategic priorities, including ramping up our growth assets, delivering projects that elevate patient experience, like digitalisation, and our entry into Saudi Arabia, which we announced in August,” said Dr. Shamsheer Vayalil Parambath, Founder and Chairman of Burjeel Holding.
Expansion in UAE, Oman, KSA
Dr Parambath revealed that the company’s focus throughout the listing process has been on raising capital and welcoming established shareholders to support the ongoing expansion in the UAE and Oman, and pending entry into Saudi Arabia.
“The final offer price reflects this desire, whilst also allowing us to prioritise a supportive aftermarket performance post-listing.” he added.
Dr. Parambath said the strong demand for the company’s Initial public offering (IPO), which was 29 times oversubscribed, reflects the high-quality investment opportunity provided by Burjeel Holdings.
Competitive strength to attract investors
Talking about the potential investment opportunity offered by the company, the chairman said Burjeel Holdings has several competitive strengths that make it a compelling investment story and opportunity for investors in the UAE and across the region.
“First, we have a leading market position in the UAE in terms of in-patient volumes, with a total bed capacity of 1,660 beds as of 30th June 2022 and 4.8 million out-patients and 104,965 in-patients treated across our network in 2021,” he said. “This represents a UAE private market in-patient market share in 2021 of approximately 17 percent. We cater to the full socio-economic spectrum through our five-leading brands.”
In addition, the company’s focus on quality and clinical excellence has helped to prioritise attracting, training and developing the best and most innovative consultants to drive medical advancements in the GCC region, Dr Parambath said.
Attractive and resilient growth markets
In the UAE Burjeel has built the comprehensive cancer centre, the mother care services, as well as the orthopaedic and diagnostic networks in the country, the top executive pointed out.
“We operate in highly attractive and resilient growth markets, in the UAE and Oman, and we recently unveiled plans to seek opportunities to invest up to US$1 billion in Saudi Arabia by 2030,” he said. “The UAE and Oman healthcare markets benefit from strong fundamentals and growth drivers which support the Group’s future expansion plans.”
The UAE and Oman increased their healthcare expenditure from US$12.4 billion and US$2.9 billion, respectively, in 2016 to US$18 billion and US$3.5 billion, respectively, in 2021, and are expected to further expand healthcare investments to US$34 billion and U.S.$5.3 billion, respectively, by 2031, he pointed out.
Future plans
About the growth strategy, Dr. Parambath said it is focused on a number of key areas, critical of which is ramping up the company’s growth assets.
“We intend to increase patient volumes in our medium-growth and high-growth assets, by increasing patient capacity utilisation, introducing new services, and enhancing our infrastructure.”
The company is also increasing in-patient capacity, particularly in areas of complex medicine like oncology, women and children’s health, which are areas of demand from patients and areas of distinct expertise across the group, he said.
“We are also investing in our complementary long-term care and rehabilitation services, digital capability and centralisation of services where it adds value for our patients, as well as preparing for our expansion into Saudi Arabia,” the chairman said.