Considering Public Offering or Acquisition, NMC Healthcare Charts New Course

UAE's leading private healthcare provider, NMC Healthcare, is embarking on a strategic review to plot its future trajectory. The company announced on Wednesday it's exploring various options, including an initial public offering (IPO) or a potential sale of the business.

This move comes after NMC successfully navigated a turbulent period, culminating in the completion of its restructuring in March 2022. The restructuring, overseen by the Abu Dhabi Global Market (ADGM), involved the appointment of a new board of directors and a new auditor. It also saw the exit of 34 core operating companies from administration, solidifying NMC's financial footing.

NMC Healthcare, founded in 1974, boasts a vast network of healthcare facilities across the UAE. The company owns and operates 85 hospitals, specialty clinics, and medical centers under various brands, including NMC itself, ProVita International Medical Centre, CosmeSurge, and Fakih IVF Fertility Centre. This extensive network caters to over 5. 5 million patients annually, solidifying NMC's position as a major player in the UAE's healthcare landscape.

"We are pleased to explore strategic alternatives for the company at an exciting time in the UAE, " said David Hadley, NMC Healthcare's CEO. He highlighted the UAE's burgeoning population growth, presenting an attractive opportunity to expand and deliver high-quality medical services to a diverse and evolving demographic.

NMC's decision to explore an IPO comes after its delisting from the London Stock Exchange in 2020. The delisting was a consequence of financial difficulties that surfaced after a report by short seller Muddy Waters cast doubt on the company's financial statements. The report alleged that NMC had inflated the value of its assets while downplaying its debt.

NMC has appointed Rothschild & Co. as its first financial advisor to spearhead the strategic review process. The company also plans to bring on a second advisor in the near future. While the review unfolds, Rothschild & Co. will handle all market inquiries on NMC's behalf.

NMC's strategic review signifies a pivotal moment for the healthcare provider. Having emerged from a period of restructuring, NMC is now poised to capitalize on growth opportunities within the UAE's promising healthcare sector. Whether it opts for an IPO or a possible acquisition, NMC's future holds the potential for significant developments.

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