Middle East Healthcare Co shelves IPO plans as Saudi bourse hits new low

The Capital Market Authority (CMA), Saudi Arabia’s market regulator, said Middle East Healthcare Co. (MEAHCO) has requested to postpone their initial public offering (IPO) to a later date to be determined within six weeks.

The CMA said the offering should be launched before March 31, 2016, or approval of the company’s prospectus will be cancelled.

MEAHCO did not cite reasons for the postponement. The decision, however, comes just a day after the Saudi bourse plunged 5.4 percent to hit a five-year low.

In December, MEAHCO said it will float 27.6 million shares, or 30 percent of its capital, in an IPO after completing its book-building process, according to data available on Argaam.

Founded by the Batterjee family, MEAHCO has four wholly-owned hospitals branded Saudi-German Hospitals in Dubai, Jeddah, Riyadh, and Madinah. It also owns 32.3 percent of Hail National Health Services Co., and is establishing a new hospital in Hail.