Al-Noor Hospitals Group expects to raise between $320m and $390m by selling a third of its shares through an initial public offering on the London Stock Exchange (LSE), the company said on 10 June. Almost half of that – $150m – will be raised through the issuances of new shares.

The Abu Dhabi-based healthcare provider is targeting a price of £5.25 to £7.25 per share.

Part of the capital raised through the offering will be used to acquire a speciality centre and a group of medical centres worth $50m combined. Al-Noor’s capitalisation after the IPO will be between $950m and $1,260m.

Deutsche Bank and Goldman Sachs have been appointed as joint sponsors and global coordinators, with HSBC Holdings as joint bookrunner.

Al-Noor is eyeing a premium segment listing, which requires companies to comply with the UK’s highest standards of regulation and corporate governance.

It has become a subsidiary of a UK public company, which now controls the assets and businesses of Al-Noor and will eliminate the need for waivers and exemptions for its listing.

Last year, NMC Health became the first Abu Dhabi company to list on the LSE, raising $187m when it went public. Over the past year, NMC Health’s share price has risen by around 40 per cent.

The GCC’s healthcare industry is set to grow exponentially over the next few years as a result of a rapidly expanding population, growing figures of lifestyle diseases and deeper insurance penetration.