Abu Dhabi-based healthcare platform PureHealth Holding made a remarkable market debut on Wednesday, with its shares soaring by an astonishing 69% above their initial public offering (IPO) price.
The company successfully raised nearly $1 billion by offering 10% of its business to the public, marking a significant milestone in its journey.
PureHealth has played a crucial role in the United Arab Emirates’ response to the COVID-19 pandemic, particularly in screening for infections.
The decision to go public has been in the pipeline for several years, reflecting the company’s ambition to expand its presence not only within the UAE but also on the international stage.
As of its market debut, shares of PureHealth were trading at 5.5 dirhams ($1.50) each, significantly higher than the IPO offer price of 3.26 dirhams per share.
This impressive performance on the stock market indicates strong investor confidence in the company’s future prospects and its pivotal role in the healthcare sector.
PureHealth is a joint venture owned by the Abu Dhabi sovereign wealth fund ADQ and one of the capital’s largest conglomerates, IHC. Both entities are under the leadership of Sheikh Tahnoun bin Zayed Al Nahyan, who serves as the national security adviser and is a brother of UAE President Sheikh Mohammed bin Zayed.
IHC, with its various subsidiaries, has previously taken steps to list on the ADX exchange as part of a broader strategy to diversify Abu Dhabi’s economy away from its traditional reliance on hydrocarbons. This diversification effort aims to deepen the capital markets and stimulate investment in the region, positioning Abu Dhabi as a hub for various industries beyond oil and gas.
PureHealth’s successful IPO and remarkable market debut highlight the growing significance of the healthcare sector in the UAE and the broader region. With plans for international expansion and a strong track record in managing healthcare services, PureHealth is poised to play a pivotal role in shaping the future of healthcare delivery both domestically and globally. Investors are clearly optimistic about the company’s potential to drive innovation and growth in this critical industry.