Saudi Arabia’s Public Investment Fund has appointed SNB Capital as one of the banks leading on a planned initial public offering of the Kingdom’s largest medical procurement firm.
A spokesperson for SNB Capital verified its involvement in the listing process of the National Unified Procurement Co., which could raise up to $1 billion from the sale of a 30 percent stake in the company.
The bank was one of three mentioned in a report by Bloomberg, which also claimed JPMorgan Chase & Co. and Morgan Stanley would be involved in the IPO, although neither of those institutions could be reached by Arab News for a comment.
The deal could come as soon as this year, Bloomberg said.
The IPO reflects investor confidence in Saudi Arabia’s economic reforms and the healthcare sector’s growth potential.
It also underscores the Kingdom’s commitment to attracting foreign investment and promoting private sector participation in its economy.
Founded in 2009, Nupco plays a crucial role in Saudi Arabia’s healthcare sector by centralizing procurement and logistics services for medical supplies and pharmaceuticals.
This initiative aligns with the Kingdom’s Vision 2030, which aims to diversify the economy and reduce its dependence on oil revenues.
The IPO of Nupco is part of a broader strategy by the PIF to monetize its assets and invest in various sectors to drive economic growth and development.
The PIF, chaired by Crown Prince Mohammed bin Salman, has been at the forefront of transforming Saudi Arabia’s economic landscape through substantial investments in sectors such as technology, entertainment, and tourism.
Healthcare development is one of the key pillars of Vision 2030 including boosting the pharmaceutical sector.
In June, Saudi healthcare group Dr. Soliman Abdel Kader Fakeeh Hospital Co. raised $763 million in a Riyadh IPO in June, closed at 10 percent above its offering price of SR57.5 ($15.3) in Riyadh.