NMC Health raises $187m from London IPO

02 April 2012

Company lists on London Stock Exchange

Abu Dhabi-based healthcare provider NMC Health has listed on the London Stock Exchange (LSE) after an initial public offering (IPO) that raised £117m ($187m). 

The company floated 55.7 million ordinary shares priced at £2.10 each. The company has been valued at £390m, making it eligible for the FTSE 250 benchmark. It had initially hoped to raise $250m from the IPO.

“The funds we have raised will enable us to implement our exciting growth plans which include developing new and existing facilities and funding future growth opportunities,” says BR Shetty, founder, managing director and chief executive offer of NMC.

NMC Health is the first Abu Dhabi company to list on the LSE and is only the second regional IPO to list outside of the Middle East. In June Dubai’s port operator DP World opted for a dual-listing on the LSE and the Nasdaq Dubai.

“The decision to list on the LSE was taken by management because of the [greater] liquidity and exposure to institutional clients,” says Hani Buttikhi, vice-president of investment banking at UAE investment bank Shuaa Capital.

According to Buttikhi the IPO was oversubscribed, but it is not clear yet by how many times. The IPO was not open to retail investors.

A greenshoe or over-allotment option may be exercised over the next few days for 15 per cent of the existing shares.

Germany’s Deutsche Bank acted as the sole global co-ordinator, sponsor and book-runner. The UK’s Numis Securities Limited and Shuaa Capital acted as joint lead manager.

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