RIYADH – Two of Saudi Arabia's largest private hospital groups will seek initial public offers of their shares on the Kingdom's bourse next year, banking sources aware of the matter said, amid a surge in demand for healthcare services in the region. Sulaiman Al-Habib Medical Group (HMG), one of the largest private providers of healthcare in the Gulf region, has appointed the investment banking arm of Banque Saudi Fransi to assist with the sale, two Saudi banking sources said. The IPO is likely to be the largest for an established private company in Saudi Arabia since investment firm Kingdom Holding in 2007, one of the sources said. Almana General Hospitals (AGH), focused on the Kingdom's Eastern Province, also wants a listing on the local bourse and has appointed GIB Capital, the investment banking arm of Gulf International Bank, to help with the process, according to the sources. AGH made net income of between SR100 million and SR150 million ($26.7 million to $40 million) in 2012 and the business could be valued at 13 times that figure, one source said. HMG did not respond to emails and calls seeking comment. An AGH spokesman was not available for comment. – Reuters
