The healthcare and education investment business intends to invest $67 million in the kingdom's primary healthcare sector, nearly half of which will be spent on the Shifa Al Munthaza Polyclinic transaction.

Foundation Holdings Co. of Dubai purchased a share in a Saudi Arabia-based primary health chain, its second investment in the kingdom's fast-growing medical care industry, and announced ambitions to float the company within the next two years.

According to chief executive officer Abhishek Sharma, the healthcare and education investment business purchased 51 percent of Shifa Al Munthaza Polyclinic. According to him, Foundation Holdings intends to invest around SR250 million ($67 million) in Saudi Arabia's primary healthcare sector, nearly half of which would be spent on the Shifa transaction.

The kingdom's primary healthcare sector is anticipated to expand to SR50 billion by 2025, up from 28.6 billion now. “Healthcare in Saudi Arabia is one of the region's fastest expanding markets,” Sharma added.

“We invest in local champions to grow and strengthen them, and then we take them public to make them more sustainable,” he continued.

Shifa Al Munthaza was founded in 1992 and now has 16 institutions that serve over a million patients each year. The acquisition was advised by EFG-Hermes Holding, with legal assistance provided by King & Spalding and Khalid Nassar & Partners.

Foundation Holdings intends to list Shifa and another Saudi portfolio business, medical products distributor ProMedEx, in the country, which has been the Middle East's top market for initial public offerings (IPOs) over the last year.

Both companies are anticipated to begin trading on Nomu, Riyadh's parallel market for smaller listings, over the next 18 to 24 months. According to Sharma, each firm is now valued approximately SR500 million, and values may grow to SR750 million to 1 billion riyals in the next three to five years.

Foundation Holdings is also considering additional acquisition prospects in Riyadh and the kingdom's eastern province, according to Sharma.

Foundation Holdings signed a memorandum of understanding (MoU) with the Bahrain Economic Development Board (EDB) in May to launch two affiliate firms in the country, Right Health and ProMedEx, with a $30 million investment.

Right Health's debut will be centered on a new research and development center, as well as a chain of outpatient and diagnostic facilities and pharmacies, with a clinical capacity of 150 physicians and nurses capable of treating up to 500,000 patients yearly.