Aster DM Healthcare, headquartered in Dubai, is poised to undergo a dual listing in both the UAE and Saudi Arabia in the coming three to five years, as stated by the company’s top executive.
Azad Moopen, the founder, chairman, and managing director, has outlined a strategic move for Aster DM Healthcare, signaling an exit opportunity for investors holding a 65 percent stake in the publicly traded premium healthcare provider.
While the Moopen family intends to maintain its ownership stake, a portion will be available for sale, emphasizing the company’s dedication to enlarging its presence in Gulf Cooperation Council (GCC) countries, with a focus on expansion in Kuwait, Qatar and Oman.
Addressing the foray into the Saudi market, Moopen pointed out a significant gap between supply and demand, particularly in the realm of pharmacies, which the group aims to bridge. In tandem with this expansion, Aster DM Healthcare plans to establish approximately 250 pharmacies over the next three to five years, with considerations for the addition and opening of clinics and hospitals across the Kingdom.
To facilitate this ambitious expansion, the company is exploring a $100 million borrowing initiative this year, aiming to extend its reach in Saudi Arabia and other countries. Moopen indicated that this financing would constitute around 15 to 20 percent of the company’s total value.
In a recent development, Moopen discussed an agreement to sell a majority stake of 65 percent of the group’s business in the Gulf to a consortium led by Fajr Capital. The founder projected the completion of the deal in the coming weeks, with the Moopen family retaining a 35 percent share. Moopen anticipates that this infusion of new investors will catalyze future growth in GCC countries, supporting the group’s expansion plans, especially in Saudi Arabia, while providing essential financial resources.
Established in 1987, Aster DM Healthcare holds a leading position in clinics in Dubai, ranking first or second in hospitals, and securing the second position in pharmacies.
The move towards dual-listings in the region has been a notable trend, with non-Saudi companies expected to gain approval for dual listings on the Saudi market, as mentioned by Tadawul’s CEO in October 2022.
The emphasis on securing financing for expansion in specific industries aligns with the broader goals of the capital market to be a primary partner in supporting growth initiatives. The market maker system and collaborations with financial institutions and regulatory bodies aim to enhance market efficiency and effectiveness by bolstering liquidity.
