Integrated Diagnostics Holdings, an Egypt-based medical services provider controlled by the Middle East’s biggest private equity firm, plans to list on the London Stock Exchange next month — the first Egyptian company to do since 2008.

The initial public offering — the result of a merger of Al Borg Laboratories and Al Mokhtabar Laboratories — has long been rumoured but continually put off in part because of turmoil in the region.

The company, which is expected to raise about £200m and have a market capitalisation of about £500m, said in its IPO announcement that it had continued to grow as the private healthcare industry in the Middle East expanded.

IDH, the largest private sector diagnostics provider in Egypt, also has operations in Jordan and Sudan. It now operates 283 labs and performed 16.5m tests for 4.1m patients in the first nine months of 2014.

The company said this had translated into adjusted earnings before interest, tax, depreciation and amortisation of E£265.6 (£24.5m), with a margin of 42.5 per cent and increased profit from operations of E£157.2m (£10.8m) in the first nine months of 2014. Between 2011 and 2013, Al Borg’s and Al Mokhtabar’s gross profit from operations grew by 49.1 per cent and 107per cent, respectively.

Abraaj is one of the biggest owners of IDH, after rolling its Al Borg portfolio company into Al Mokhtabar in 2012. The Dubai-based private equity firm and other shareholders expect to list up to 45 per cent of the company’s shares, including a 15 per cent overallotment option.

Hend El Sherbini, its chief executive, said IDH represented a “highly attractive” future growth story. “This initial public offering is a pivotal next step for us that will allow us to further accelerate our market penetration and expand our service offerings in Egypt and, importantly, across the broader Middle East and Africa region,” she said.

IDH said its target markets had largely demonstrated stable growth, in spite of recent political and economic turmoil in the region. The compound annual growth rate per capita between 2013 and 2018 was expected to be 9 per cent in Egypt and 5.1 per cent in Jordan.

The company said private healthcare expenditure was expected to increase in target markets, which currently had significantly lower expenditure than in the US and other developed countries. The compound annual growth rate of private healthcare expenditure per capita over the next four years was forecast to be 13.2 per cent in Egypt, 7.1 per cent in Jordan and 7.4 per cent in Sudan.

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