The main Saudi market index rose again during Thursday's trading, the last session of the week, after Saudi stocks fell at the highest daily rate in seven weeks.

The Saudi main market index, TASI, rose by about 46 points, equivalent to 0.4%, to 11,635 points.

In contrast, the parallel market index recorded an increase of 9 points, or 0.04%, to 30,174 points, at 13:22 Riyadh time.

The TASI index closed trading on Wednesday at 11,591 points, down 1.2%. The market lost the 11,700-point level, which had been a support for it in the past three months, raising investors’ concerns that it would not be able to return to the 12,000-point level that was expected recently. The market has been in a consolidation range since May without breaking out of it.

New offer

On the other hand, Almoosa Healthcare Company announced its intention to conduct an initial public offering of its shares on the Saudi Stock Exchange, which represents the latest subscription in the healthcare sector in the Kingdom. The company said that it will offer 13.29 million shares, including 9.3 million new shares representing 21% of its capital after the capital increase, in addition to the sale of 3.987 million existing shares representing 9% of the capital by current shareholders.

Almoosa Healthcare, which operates 730 beds in the Eastern Province of Saudi Arabia (TADAWUL:3080), said the proceeds from the offering will be used to repay debt and fund its expansion plans. The book-building process will start on December 4 and end on December 24, with the final allocation set for December 29. The Company for Cooperative Insurance (TADAWUL:8010) and Al Fozan Holding Company have committed to invest as anchor investors with 4.1% and 2.5% stakes respectively.

During the first nine months of this year, the company achieved revenues of 979 million riyals, with a net income of 40 million riyals. The healthcare sector is a key part of Saudi Vision 2030, which aims to improve the quality of life and growth in the Kingdom. The sector has witnessed several listings, including major companies such as Middle East Pharmaceutical Industries and Dr. Sulaiman Abdul Qader Fakeeh Hospital.

It is also worth noting that the Saudi Public Investment Fund plans to list Nupco, the kingdom’s largest medical procurement company. Saudi Arabia is one of the most active markets in the Middle East this year in terms of offerings, with local companies raising more than $16.8 billion, supported by the huge secondary offering of Saudi Aramco (TADAWUL:2222) in May.

Zamil stock

Zamil Industrial Investment Company (TADAWUL:2240) topped the list of the most advanced stocks so far on the main TASI index, recording gains of 8.5% to SAR 29.30 per share.

In this context, Investing PRO data indicates that Al Zamil Company continues to provide high returns to shareholders, which reflects the company's efficiency in distributing profits to shareholders. The high return to shareholders expresses the company's ability to generate significant returns on shareholders' investments, and is a strong indicator that the company is effectively returning capital to shareholders. This feature is a positive indicator that enhances confidence in the company's ability to achieve outstanding returns for investors, and contributes to attracting future investments.

Investing PRO data also shows, based on Pro Tips, that Zamil Industrial Investment Company’s financial valuations indicate a high return on free cash flow, a key metric that reflects a company’s ability to generate more cash from its operations than it spends on assets. Free cash flow is a vital indicator of a company’s ability to meet its financial obligations and distribute substantial dividends to shareholders. Having high free cash flow is a strong signal to investors that the company is generating real value from its operating activities, which enhances the company’s financial stability and ability to allocate capital to investors.

Despite the strong performance in terms of revenues and cash flow, some analysts expect that Al Zamil will face challenges in achieving profitability this year. According to expectations, the company’s expenses are likely to exceed its revenues in the near future, which raises some concerns among investors. Profitability is a key measure of the ability to generate revenues in any company, so expectations of not achieving profits may affect investor sentiment. However, focusing on cash flow management and future investments may help the company restore financial balance in the coming months, according to the Pro Tips tool available exclusively on Investing Pro, which provides valuable information and data about any company listed on the stock exchange, whether Arab or international.

Overall, Zamil Industrial Investment Company continues to deliver strong performance in terms of financial returns and cash flow, which enhances investor confidence in its future. However, challenges related to achieving profitability this year may require it to take additional measures to address these difficulties.