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Abu Dhabi healthcare firm VPS launches Burjeel Holdings ahead of planned IPO push May 24, 2022

Burjeel Holdings will have 60 healthcare assets to begin with

Dubai: Abu Dhabi’s VPS Healthcare, which operates the Medeor, Burjeel and LLH hospitals, has created a new corporate entity – Burjeel Holdings – to oversee all of its interests in this sector.

“As we embark on our expansion, the platform will provide the foundation to scale up operations in new geographies in the GCC and beyond,” said Dr. Shamsheer Vayalil, Chairman and Managing Director, VPS Healthcare. “Burjeel Holdings will also enable us to take strategic corporate actions needed to drive our future growth.”

The announcement, which was made in Davos, comes just as reports emerge of VPS planning an IPO. It could be that Burjeel Holdings will be the umbrella entity that will go public. (Another VPS entity, Response Plus Holdings, is already listed on ADX.)

“Burjeel Holdings enables us to consolidate our healthcare offerings under one platform to create an integrated ecosystem, which will continue our vision to offer end-to-end health solutions under a single window,” said Vayalil.

The firm will operate nearly 60 healthcare assets catering to various income groups. VPS/Burjeel Holdings will likely enter new markets within the region, with Saudi Arabia always a high priority one. (Its flagship facility, Burjeel Medical City, is the largest private hospital in the UAE and the only ESMO-accredited center. The other brands that it operates under are 'Lifecare' and 'Tajmeel'.

A post-Covid expansion?

Healthcare sector in the UAE and Gulf are at a point where they need to pursue new expansion in the number of hospitals and clinics available to serve the populace in a post-COVID-19 environment. Listed healthcare operators in Saudi Arabia have shown solid 2021 numbers, and the same claims are being made about UAE’s leading operators.

The sentiment is that healthcare businesses should raise funds to finance the next round of expansion, and Burjeel’s likely push with an IPO would be an interesting watch. (Response Plus Holdings, meanwhile, came up with a net profit of Dh14.31 million for the first three months, against a loss of Dh1 million, on revenues of Dh87.7 million. The company provides on-site and off-site emergency services as well as healthcare related training and recruitment.)

So, Burjeel Holdings' creation would then be a natural progression for VPS and Vayalil. “We are proud to launch this exciting next phase of growth on the sidelines of the World Economic Forum Annual Meeting in Davos as a representation of our vision to explore, expand, and grow our capabilities,” he said.

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