SEDCO acquired a 50% stake in Nahdi Medical Company in 2003, since then we have been a driving force behind the company’s expansion and redefined the retail pharmacy market. Nahdi is now a leading regional healthcare brand and the largest pharmacy chain in the Middle East.
In 2003, Nahdi had 200 outlets, a milestone figure at the time, but one that was to prove only a staging post in a spectacular growth trajectory. Today, Nahdi has more than 1,150 pharmacies in 144 cities throughout Saudi Arabia and the UAE, a growing network of NahdiCare polyclinics, and a state-of-the-art digital platform.
As its long-term strategic and value-enhancing partner, SEDCO has contributed to Nahdi’s success by injecting robust, world-class corporate governance practices and, in close collaboration with its management team, driven expansion and improved operational and capital efficiency.
Strategy, Governance and Rapid Growth
Through its two representatives on Nahdi’s Board, including the Chairman, SEDCO has taken the lead on multiple initiatives to ensure that strong corporate governance practices are firmly in place, supporting a broad-based expansion program.
As an active Board participant, SEDCO has worked to align Nahdi’s main strategic initiatives: strengthening the core retail offering; expanding the omnichannel retail footprint through the development of e-commerce; and developing primary healthcare to diversify the company’s revenue lines.
Listing on the Saudi Exchange in 2022
Raising approximately SAR 510 billion ($1.36 billion), Nahdi’s listing on the Saudi Exchange (Tadawul) in 2022 followed one of the Kingdom’s largest ever private IPOs.
The entire process was overseen by a steering committee and operating team comprising Nahdi and SEDCO executives, who led all the pre-IPO and IPO workstreams. These included reconfiguring the Board and its committees in line with best practice; conducting the advisors’ selection process; drafting and monitoring IPO timelines; and conducting a comprehensive analysis to determine the ultimate equity structure.
Our Investment team also helped to draft the equity story, investor presentations and prospectus, and addressed feedback received from the Capital Market Authority (CMA).
SEDCO’s highly successful investment in Nahdi serves as a case study for our future approach to domestic investments. Further, its success demonstrates how our objectives for social and economic development of the Kingdom, as set out in Vision 2030, are being realized for the benefit of the wider community.
Key Facts
