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Invest in Al Mokhtabar, Al Borg labs and more | IDH now on EGX

IDH initially IPOed on the London Stock Exchange (LSE) and has now completed its dual listing on EGX. This means the company is now listed on both exchanges and Egypt based investors can now trade IDH shares. 

IDH is the company that owns both Al-Mokhtabar and Al-borg Labs, and is the largest fully-integrated private sector diagnostics service provider, with more than 50% share by revenue of the private chain market in Egypt. The company currently has a market capitalization of EGP 10B. 

Why are we excited about IDH joining EGX

Integrated Diagnostics Holding (“IDH”) is a leading consumer healthcare company in the Middle East and Africa with operations in Egypt, Jordan, Sudan and Nigeria. IDH is a fully-integrated provider of high-quality medical diagnostic services and owns a network of 481 branch labs and serves +7.1 million patients. 

Key Brands

IDH lab networks offer a wide variety of diagnostic services and has managed to offer +2,000 diagnostic tests. Almokhtabar lab is a leading laboratory in the ME region providing both diagnostic and pathological services, providing more than 1400 analyses in the fields of immunology, hematology, infectious diseases, etc. 

Alborg Labs, another regionally leading laboratory owned by IDH, offers a variety of diagnostic services. Their molecular biology lab is a market leader in the hepatitis and Influenza testing through their certified PCR technology.

Corporate Evolution

The Group’s CEO, Dr. El Sherbini, is a professor of clinical pathology at the Faculty of Medicine, Cairo University and currently sits on the board of American Society of Clinical Pathology (Egypt) and consults on the international certification process. She received her MBBCh, Masters in Clinical and Chemical pathology, PhD in Immunology from Cairo University, and MBA from London Business School. Dr. El Sherbini served as CEO of Al Mokhtabar since 2004, until becoming CEO of the Group in 2012.

Operational Highlights

IDH’s branch network of 481 labs at year-end 2020 spans 4 countries, the largest of which is Egypt

The Group’s revenue recorded EGP 2.6B in 2020, up 19% year-on-year, as a direct result of IDH’s ability to swiftly adapt its service offering to change dynamics by offering PCR and Covid-19- related testing in Egypt and Jordan and ramping up its house calls services in both countries.

IDH adopts a generous dividend yield consistently since its listing on the LSE (London Stock Exchange)

Competitive Strengths

IDH is implementing an ambitious growth strategy which leverages the scalability of its business model and the broad experience of its management team. According to IDH’s annual report, the company’s competitive strengths include:

  1. Exposure to resilient markets with favourable dynamics
  2. Strong market position with over three decades of industry experience
  3. Scalable asset-light business model
  4. Strong balance sheet and cash generation capacity
  5. Experienced and entrepreneurial management

Long Term Growth Strategy

IDH leverages its competitive strengthens to capture substantial opportunities and deliver on a four-pillar growth, namely:

  1. Continue to expand customer reach
  2. Increase tests per patient by expanding the Group’s services portfolio
  3. Expand into new geographic markets through selective, value-accretive acquisitions
  4. Introduce new medical services by leveraging the Group’s network and reputable brand position

IDH Listing Blueprint

Trading on EGX began on 20 May 2021 after IDH satisfied all regulatory approvals for its technical listing without any concurrent offering of new shares. The company also met the regulatory requirements of the EGX listing and delisting rules, including a 5% minimum free float (equivalent to 30,000,000 shares) on the exchange. 

The technical listing allowed IDH to list on the stock exchange without the need for public offer, giving the company the benefits of being a publicly listed company without having to change the shareholding structure. On the other hand, the dual listing allows IDH to get access to more capital and boost liquidity to the stock.

Detailed Financials

Since the Company’s IPO on the LSE in 2015, IDH has delivered consistent top- and bottom-line growth supported by a steady increase in volumes and increasingly favorable pricing across the Group’s service offering.

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