Saudi eyecare group Magrabi plans float, hires banks, sources say

Saudi eyecare group Magrabi plans float, hires banks, sources say

DUBAI - Saudi eyecare group Magrabi, which runs one of the largest chains of optical retail stores and eye clinics in the Middle East, is considering a flotation of its hospitals business next year and has hired banks for the deal, two sources familiar with the matter said.

Magrabi has mandated Rothschild & Co as financial advisor and HSBC as lead manager to run the initial public offering (IPO), said the sources, who declined to be named as the matter is not public.

Magrabi and HSBC did not immediately respond to a request for comment when contacted by Reuters on Wednesday. Rothschild declined to comment.

Saudi Arabia is encouraging more family-owned companies to list in a bid to deepen its capital markets under reforms aimed at reducing the kingdom's reliance on oil revenues.

The kingdom has had a surge in IPOs since it listed oil giant Saudi Aramco in a record $29.4 billion listing in 2019.

Saudi Arabia's Middle East Healthcare Company, the company behind Saudi German Hospitals, raised $3.2 billion in 2019 when it sold 30% of the company in an IPO. Nahdi Medical, one of the largest pharmacy chains in the kingdom, raised $1.36 billion in March from its public share sale.

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