NMC Healthcare is preparing a US$250 million (Dh918.2m) listing on the London Stock Exchange, shunning local markets to tap deep-pocketed investors overseas.
The Abu Dhabi healthcare company run by Dr BR Shetty, will use the proceeds to acquire a medical centre in Dubai, build a day-patient centre and pharmacy in Abu Dhabi, and fund the development of three hospitals in the UAE.
NMC is 30 per cent owned by Dr Shetty, with the remaining shares split between Khalifa bin Butti, Saeed bin Butti and Infinite Investment, a firm jointly owned by the pair.
Whatever funds are left from the share sale will be earmarked for expansion plans around the Middle East.
The listing was the "next logical step" for the company, which has operated in the UAE for 37 years, said Dr Shetty, the founder and chief executive of NMC.
"This will allow the company to develop existing and new facilities, as well as expand into new high-growth markets," Dr Shetty said. "We have specifically chosen London for the IPO given its deep pool of capital and global profile."
The UAE's markets, by contrast, have missed out on large sums of investment because of their inability to secure an upgrade to "emerging market" status by the index provider MSCI.
The deal requires a minimum free float of 25 per cent of the company's shares to satisfy regulatory requirements, implying a valuation of NMC of about $1 billion.
The London listing brought a number of benefits to NMC, not the least of which is access to investors focused on "emerging" and "frontier" markets, said Christopher Laing, the regional head of equity capital markets at Deutsche Bank, which is spearheading the deal.
"By listing in London, they'll get index inclusion - they'll be part of the FTSE 250, and they'll open up their shares to emerging market investors," he said.
NMC disclosed revenues of $443.7m for last year, alongside earnings before interest, taxes, depreciation and amortisation of $70.5m, an increase of 25 per cent on the year earlier.
Deutsche Bank is the sole sponsor, global coordinator and bookrunner on the deal, acting alongside Numis Securities and Shuaa Capital as joint lead managers.
In January last year, NMC sold a 40 per cent stake to Centurion Investment, an Abu Dhabi private equity firm owned by Saeed bin Butti.
Last month, Centurion took a 40 per cent stake in UAE Exchange, a currency exchange founded by Dr Shetty.
The listing has been planned as a premium listing to allay investor concerns about corporate governance in "frontier" and "emerging" market companies and minority shareholder rights, Mr Laing added.
The company has appointed Mark Tompkins, a former chairman of Allied Healthcare International, as an independent non-executive chairman of its board of directors.
He joins Justin Jewitt and Patrick Meade, who have been appointed as independent non-executive directors.
ghunter@thenational.ae
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY%20PROFILE
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The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
2018 ICC World Twenty20 Asian Western Sub Regional Qualifier
Event info: The tournament in Kuwait is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.
Teams: UAE, Bahrain, Saudi Arabia, Kuwait, Maldives, Qatar
Friday fixtures: 9.30am (UAE time) - Kuwait v Maldives, Qatar v UAE; 3pm - Saudi Arabia v Bahrain
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Sunday's fixtures
- Bournemouth v Southampton, 5.30pm
- Manchester City v West Ham United, 8pm
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Killing of Qassem Suleimani
If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
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UAE - India ties
The UAE is India’s third-largest trade partner after the US and China
Annual bilateral trade between India and the UAE has crossed US$ 60 billion
The UAE is the fourth-largest exporter of crude oil for India
Indians comprise the largest community with 3.3 million residents in the UAE
Indian Prime Minister Narendra Modi first visited the UAE in August 2015
His visit on August 23-24 will be the third in four years
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, visited India in February 2016
Sheikh Mohamed was the chief guest at India’s Republic Day celebrations in January 2017
Modi will visit Bahrain on August 24-25
