Saudi wealth fund said to invite bank pitches for Nupco IPO
Details on timing and size have not been finalised, though a deal could likely raise less than US$1 billion
SAUDI Arabia’s sovereign wealth fund has invited banks to pitch for roles on the planned initial public offering of the kingdom’s largest medical procurement firm, as it seeks funds to finance the crown prince’s ambitious vision.
Rothschild is advising the Public Investment Fund on Nupco’s potential IPO, people familiar with the matter said, asking not to be identified because the information isn’t public. Details on timing and size have not been finalised, though a deal could likely raise less than US$1 billion, they said.
A representative for Rothschild declined to comment, while PIF and Nupco didn’t respond to requests for comment.
The PIF, a key pillar of Saudi Crown Prince Mohammed Salman’s trillion-dollar Vision 2030 plan to seek economic growth outside of oil, has listed several of its portfolio companies in recent years.
The US$940 billion entity has been considering plans to accelerate debt sales, obtain bank loans and line up equity offerings as it hunts for new sources of cash, Bloomberg News reported in March.
The fund is also readying port operator Saudi Global Ports for an IPO as soon as this year, Bloomberg News reported in February.
Saudi Arabia has seen a pick-up in IPO activity in recent weeks, with four companies including hospital group Dr Soliman Abdul Kader Fakeeh Hospital announcing offerings. The kingdom has more than ten companies waiting to pursue IPOs, while upwards of 50 firms have applied for listings, according to the head of its stock exchange.
Founded in 2009, Nupco seeks to raise the level of health services in the kingdom, improve the efficiency of government spending for the purchase of medical supplies and increase the effectiveness of supply chains in the public health-care sector, according to its website.
Health care is one of the main focus areas of Vision 2030 as the country seeks to develop its drug industry. About a year ago, the PIF created a new entity to attract pharmaceutical and biotech companies to invest in developing products including insulins, vaccines and plasma therapeutics, among others. BLOOMBERG
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