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Sunday, 7 February 2021

After USD 100 mn in investment: AMG has plans to IPO in 2023

Alfa Medical (AMG) will invest EGP 5 bn over the next five years and is planning an IPO in 2023, Chairman Adel Talaat told the local press on Thursday. Talaat’s statement on the company’s planned investments came one day after UK government development finance arm CDC announced a USD 100 mn investment in the healthcare group. The chairman provided no detail on AMG’s IPO plans beyond the 2023 target date.

Investment plans in detail: The company plans to nearly double its stock of hospital beds to 300 from a current 170 by the end of 2021, and add 130-150 beds and 25 laboratories each year, Talaat said. The group’s most ambitious project, Alfa Medical City, will be completed by the end of 2023.

It’s unclear whether the EGP 5 bn figure includes CDC’s investment, which apparently will also help to finance the Alfa Medical City and expand the company’s lab count, in addition to setting up a training academy for AMG employees and other healthcare professionals. CDC has a stake in the company shy of 20%, Talaat said.

Advisors: Compass Capital was sell-side advisor to Alfa on the CDC investment. The transaction marks the “very exciting” launch of a new line of business at Compass, our friend Tarek Abdel Rahman tells us. “A transaction with an investor of CDC’s caliber draws a line under the strength of Alfa’s business model and the attractiveness of the healthcare industry in the Arab world’s most populous country,” added Abdel Rahman, managing partner at Compass, whose track record in M&A and corporate finance spans from Citi to Beltone and boutique firm Akanar (now part of the investment bank Arqaam). Matouk Bassiouny & Hennawy and Clifford Chance were counsel to CDC, according to a statement (pdf).

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