Hospital operator Burjeel sets IPO price at low end, to raise $300 mln

An investor looks up at electronic boards displaying stock information at the ADX Abu Dhabi Securities Exchange stock market May 16, 2012. REUTERS/Ben Job

DUBAI, Oct 5 (Reuters) - Abu Dhabi-based hospital operator Burjeel Holdings said on Wednesday it expected gross proceeds of about 1.1 billion dirhams ($299.51 million) from its initial public offering, after it set the share price at the lower end of a price range.

Burjeel set its final offer price at 2 dirhams a share after it said last week the range would be between 2 dirhams and 2.45 dirhams.

"The price for the Offering has been set at AED 2.00 per ordinary share," Burjeel said, and confirmed it would sell 11% of the company's issued share capital, or more than 550.7 million shares in the company.

Gross demand for the IPO was more than 32 billion dirhams, "implying an oversubscription level of 29 times", Burjeel said, adding the company was expected to have a market capitalisation of about 10.4 billion dirhams when listed, expected on Monday.

"The offer price reflects our desire to prioritize a supportive aftermarket performance post-listing and we are delighted that Burjeel Holdings will be one of the largest private healthcare companies on ADX once listed," said Shamsheer Vayalil Parambath, founder and chairman of Burjeel.

VPS Healthcare Holdings will continue to own a majority 70% stake in Burjeel following the listing, Burjeel said.

In September, Abu Dhabi's International Holding Company, chaired by the UAE's national security adviser, bought a 15% stake in the company.

Dubai Islamic Bank (DISB.DU) was lead manager and First Abu Dhabi Bank lead receiving bank. International Securities was financial adviser and BHM Capital Financial Services was the listing adviser, Burjeel said. JPMorgan Securities acted as capital markets adviser to the company and selling shareholder.

($1 = 3.6727 UAE dirham)

Reporting by Yousef Saba Editing by Shri Navaratnam

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