Karachi: Abraaj Capital, a major shareholder in Byco and KESC, announced Wednesday the exit of its investment in IHH Healthcare Berhad (IHH) through an initial public offering (IPO) of one of the largest private healthcare providers in the world.
Approximately RM 6.26 billion (US$ 2 billion) was raised in the offering, making it the third largest IPO to date this year after Facebook and Felda Global (the Malaysian palm oil producer).
The offering received strong global institutional and retail demand. Over 400 global institutional accounts participated with the institutional books more than 130x covered whilst the Singapore and Malaysia retail offers were each more than 11x and 5x covered respectively. Cornerstone investors, such as Blackrock, Capital Group, Newton Investment Management Limited, Och-Ziff Capital Management Group, Fullerton Fund Management Company (Temasek), The Government of Singapore Investment Corporation (GIC), Kuwait Investment Authority (KIA), Employees Provident Fund Board, and the International Finance Corporation (IFC) accounted for 62% of the share offering.
Abraaj Capital’s original investment in Acibadem in 2007 and subsequent investment in IHH made through its Infrastructure and Growth Capital Fund and Abraaj Buyout Fund II was predicated on a strong belief that rapid demographic changes occurring across the region, coupled with rapidly rising incomes, would lead to increasing demand for quality healthcare which the public sector alone could not provide.
Speaking on the occasion, Arif Naqvi, Founder and Group Chief Executive of Abraaj Capital said: “Today’s announcement marks the successful conclusion of an outstanding partnership and a natural closure of the investment cycle of Abraaj Capital’s US$ 2 billion Infrastructure and Growth Capital Fund and US$ 500 million Abraaj Buyout Fund II. We are proud to have played a significant role in the success of Acibadem and IHH and to have participated in the development of one of the largest listed healthcare providers in the world. The success of this transaction makes clear that IHH remains extremely well-positioned in a fundamental and dynamic sector.”
Omar Lodhi, Senior Partner and Asia Regional Head, Abraaj Capital, who served on the Board of IHH, noted: “IHH’s successful IPO validates our philosophy of investing in high-growth regions and high-impact sectors. We want to thank the management team at IHH, as well as the team at Khazanah and Mitsui, with whom we have worked very closely in our collective drive to create long-term value and global best practice in the healthcare sector”.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription