Burjeel Holdings IPO

• The Group focuses on attracting, training and developing the best and most innovative consultants to drive medical advancements in the GCC region, through a unique culture of “physician-led” practices.
• The Group’s strong clinical team has been responsible for the Group’s growth to date and remains committed to delivering quality and clinical excellence going forward.
• The Group has been developing highly specialised, complex and personalised services in oncology, orthopaedics and spine, woman care and paediatrics.
• The Group intends to leverage its clinical expertise and strengths in research and development by entering the education field in 2023 through the opening of a private medical college, the College of Medicine.

• The UAE and Oman healthcare markets benefit from strong fundamentals and growth drivers which support the Group’s expansion.
• The UAE and Oman increased their healthcare expenditure from U.S.$12.4 billion and U.S.$2.9 billion, respectively, in 2016, to U.S.$18.0 billion and U.S.$3.5 billion, respectively, in 2021. They are expected to further expand healthcare investments to U.S.$34.0 billion and U.S.$5.3 billion, respectively, by 2031.
• The group recently announced a Memorandum of Understanding (MoU) with the Kingdom of Saudi Arabia’s Ministry of Investment, which will see Burjeel Holdings seek opportunities to invest up to USD $1.0 billion in KSA by 2030.

• The Group has a private market leading position in the UAE in terms of in-patient volumes, with a total bed capacity of 1,660 beds as at 30 June 2022 and 4.8 million out-patients and 104,965 in-patients treated across its network in 2021, representing a UAE private market in-patient market share in 2021 of approximately 17 per cent.
• The Group’s integrated healthcare network serves patients in Abu Dhabi, Al Ain, Dubai & the Northern Emirates in the UAE, as well as Oman, across all healthcare segments and covers the full socio-economic spectrum through the Group’s five leading brands.
• The Group operates one of the largest diagnostic networks and orthopedic practices and one of the most comprehensive cancer care facilities in the UAE.

• The Group has a strong and well-invested medical services portfolio that is built around an integrated “hub and spoke” feeder network across primary, secondary and tertiary segments.
• The hub and spoke model places the Group’s primary medical centers as the first points of contact (‘spokes’), which then drive referral into the Group’s secondary, tertiary and quaternary care hospitals (‘hubs’)
• As a percentage of revenue, maintenance capital expenditure was 1.4 per cent., 0.7 per cent. and 1.0 per cent. for the years ended 31 December 2019, 2020 and 2021, respectively.

• The Group has a track record of strong financial performance and consistent growth that has been driven by its ramp-up of assets launched in recent years and supported by its focus on treating a higher-end patient mix and cost optimisation.
• For the years ended 31 December 2019, 2020 and 2021, the Group’s revenue was AED 2,420.5 million, AED 2,605.2 million and AED 3,351.0 million, respectively, representing a CAGR of 17.7 per cent.
• The growth in the Group’s revenue was organic and largely driven by the ramp-up of BMC, Burjeel Hospital, Abu Dhabi and Medeor 24×7 Hospital, Abu Dhabi and supported by the focus on a higher-end patient mix.
• For the years ended 31 December 2019, 2020 and 2021, the Group’s EBITDA was AED 417.9 million, AED 470.2 million and AED 779.1 million, respectively, representing a CAGR of 36.5 per cent.
• For the six months ended 30 June 2022, the Group had revenue of AED 1,898.4, EBITDA of AED 414.2 million, and net profit of AED 152.9 million.

Burjeel Holdings is one of the leading regional private healthcare service providers in the UAE and Oman, operating as an integrated network across primary, secondary, tertiary and quaternary medical care services. It provides a comprehensive healthcare ecosystem to patients across the full socio-economic spectrum through its four key market leading brands, Burjeel, Medeor, LLH and Lifecare.

The Group consists of a fully-funded network of 16 hospitals, 23 medical centres (including polyclinics and specialty medical centres with dental, cosmetic, homecare services, a specialised orthopaedics centre and IVF centres) and 15 pharmacies, as well as seven entities conducting allied services such as central procurement (e.g., GPO), revenue management, centralised diagnostics, central warehousing and patient valet parking services. Leveraging its clinical expertise and strengths in research and development, the Group will also provide medical education and research through its College of Medicine at BMC, beginning in 2023.

Burjeel Holdings provides a comprehensive healthcare ecosystem to patients across the full socio-economic spectrum through its five brands, Burjeel, Medeor, LLH, Lifecare and Tajmeel.

Burjeel Holdings’ growth strategy is focused on a number of key areas:

Ramping up of growth assets
The Group intends to increase patient volumes in its medium-growth and high-growth assets, and its existing mature assets by increasing in-patient capacity utilization, introducing new services, and enhancing infrastructure which, together with increased out-patient capacity utilization, offers a significant upside.

Increasing patient yield
In addition to expanding the range of services provided at its medical facilities, the Group also intends to optimize the utilization and revenue-generating capabilities of its existing services and facilities, by increasing in-patient capacity focused on complex cases, thereby maximizing patient yield. The Group will also continue to develop and enhance its complementary long-term care and rehabilitation services that are provided through Burjeel Darak and its central diagnostics and radiology services through Co-Lab.

Operational excellence
Since its inception, the Group has invested in its systems and controls, centralisation of services and upgrades of the digital capabilities to ensure that they drive best practice across its operations and support the continued delivery of high-quality services. Additionally, the Group is developing initiatives to further enhance efficiencies through projects such as centralised radiology and ICU command centres, as well as integration of key services, creation of a sub-specialty pool and standardisation of protocols.

Geographic expansion
In addition to continued organic growth, the priority for the Group is to take a disciplined approach for future endeavours and deployment of capital expenditure over the next five years. The Group’s international expansion strategy will be based on either serving primary and tertiary care needs or providing ancillary support functions by entering into joint ventures, partnerships and similar arrangements with strong, local partners.

In support of this strategy, on 23 August 2022, the Group signed a non-binding memorandum of understanding with the KSA’s Ministry of Investment (“MISA”) to partner and collaborate with KSA institutes and healthcare organisations and invest up to U.S.$1 billion by 2030 as part of the KSA’s ‘Vision 2030’ to establish and expand various healthcare offerings across the KSA.

The Group has a track record of strong financial performance and consistent growth that has been driven by its ramp-up of assets launched in recent years and supported by its focus on treating a higher-end patient mix and cost optimisation. For the years ended 31 December 2019, 2020 and 2021, the Group’s revenue was AED 2,420.5 million, AED 2,605.2 million and AED 3,351.0 million, respectively, representing a CAGR of 17.7 per cent. The growth in the Group’s revenue was organic and largely driven by the ramp-up of Burjeel Medical City (BMC), Burjeel Hospital, Abu Dhabi and Medeor 24×7 Hospital, Abu Dhabi and supported by the focus on a higher-end patient mix, such as Thiqa patients at Burjeel facilities and middle-income patients at Medeor facilities.

For the years ended 31 December 2019, 2020 and 2021, the Group’s EBITDA was AED 417.9 million, AED 470.2 million and AED 779.1 million, respectively, representing a CAGR of 36.5 per cent.

For the six months ended 30 June 2022, the Group had revenue of AED 1,898.4, EBITDA of AED 414.2 million, and net profit of AED 152.9 million.

You will need to discuss this with your investment / financial advisor.

Having said that, Burjeel Holdings believes it has competitive strengths that make it a compelling investment story, which are described in greater detail in the prospectus document.

Key Strengths

• Unique vision and strategy focused on quality and clinical excellence
• Large, attractive and resilient growth markets
• Leading healthcare services platform in the UAE with unmatched patient offering and diversification
• Highly scalable platform focused on operational excellence and sustainability
• Primed to deliver strong / predictable growth, recurring revenue and profitability

For further information and before making any investment decision, please read the Prospectus found on the IPO microsite including the “Investment Risks” section.

The Company’s ability to pay dividends is dependent on a number of factors and there is no assurance the company will be able to pay dividends or, if a dividend is paid, what the amount of such dividend will be.

Subject to the paragraph above, the Company intends to pay cash dividends from 2023 onwards, on the expected basis of a pay-out ratio of 40 to 70 per cent. of net income, dependent on required investment for additional growth plans. In the absence of any attractive investment opportunities that meet the Group’s investment criteria and return thresholds, the Group will distribute dividends at the upper end of the pay-out ratio range or potentially higher. The first interim dividend is expected to be paid in the second half of 2023 on the basis of net income for the first half of 2023. Any dividends are expected to be paid in cash. Please see the Prospectus for further detail.

Under the share offering, Burjeel will issue new shares and the existing majority shareholder will sell shares.

The Company intends to use the net proceeds from the issue of the New Shares to pay certain of the Group’s indebtedness and for general corporate purposes.

In addition, the Company intends to use a portion of the proceeds from the sale of the New Shares and approximately AED 1,733.0 million of the proceeds from the sale of the Sale Shares (which amount will be remitted by the Lead Receiving Bank to the Company on the Listing Date in settlement of the Selling Shareholder Payable) to pay certain of the Group’s outstanding indebtedness

Any remaining net proceeds from the sale of the Sale Shares by the Selling Shareholder after the settlement of the Selling Shareholder Payable will be for the sole benefit of the Selling Shareholder. The Offering will provide the Selling Shareholder with an opportunity for a partial realisation of its shareholding in the Company.

The offering comprises up to 1,950,000,000 shares split into two tranches.

The First Tranche of the offering will be open to individual subscribers and other investors who do not qualify as Professional Investors. A NIN with ADX and bank account number in the UAE is required for applying for shares.

The Second Tranche of the offering will be open to Professional Investors. A NIN with ADX is required however a bank account in the UAE is not required.

Subscriptions will open on 29 September 2022, with retail investor subscriptions closing on 5 October 2022, and professional investor subscriptions closing on 6 October 2022.

The final offer price announcement will be made on 7 October 2022.

Please visit the dedicated section on the Burjeel Holdings IPO webpage ‘How to Subscribe’ for information on how to apply for shares through the receiving banks or ADX e-IPO portal.

A NIN is an investor identification number that is used by ADX through which all transaction on the exchange can be initiated included clearing, settlement and trading transaction. All subscribers to the IPO required a NIN to apply for shares.

How do I create an investor number (NIN) to subscribe to the IPO?

Investors can apply for the issuance of an investor number on Abu Dhabi Securities Exchange through one of the following service channels:

• SAHMI digital platform (for Emirates ID card holders with UAE Pass)
• Accredited Brokerage Firms
• Customer service offices at all branches of the Abu Dhabi Securities Exchange.

The following documents are required to issue a NIN:

Individuals:

• Original Emirates ID card. (For UAE citizens and residents holding Emirates identity)
• Passport and ID card from the country of residence for foreigners not residing in the Emirates and an International Bank Account Number (IBAN) letter, providing that the bank account is solely in the name of the applicant and not a joint bank account

Companies:

• A valid trade license copy (original for review )
• Company incorporation contract
• Company’s Board of Director members list for the last certified/audited period
• A Letter with the list of all authorized signatories
• International Bank Account Number (IBAN) letter

Investment Portfolios:

• Letter of Approval issued by the Central Bank of the United Arab Emirates to start portfolio activity
• A copy of the commercial license of the issuer of the portfolio (original for review )
• List of names and signatures of authorised people from the portfolio, with clarification of powers
• Portfolio Prospectus
• International Bank Account Number (IBAN) letter

Free Zones:

• A copy of the free zone license (original for review)
• A list of the company’s board members for the last certified period
• A letter with the list of authorised signatories
• International Bank Account Number (IBAN) letter

For more information please visit www.adx.ae

• ENBD
• Emirates Islamic
• ADIB
• Dubai Islamic Bank
• ADCB
• Mbank (Al Maryah Community Bank)
• Sharjah Islamic Bank
• Al Hilal Bank

The subscription process for each of the above banks can be found in the prospectus document, downloadable from the ‘Documents and Downloads’ section of this website.