Saudi Wealth Fund Picks JPMorgan, Morgan Stanley for Nupco IPO

Saudi Arabia’s sovereign wealth fund (Public Investment Fund) has picked banks for the planned initial public offering of the kingdom’s largest medical procurement.

People familiar with the matter told Bloomberg that JPMorgan Chase & Co., Morgan Stanley, and SNB Capital have been hired to work on Nupco’s IPO. According to the sources, the deal could happen as soon as this year.

The Public Investment Fund could raise close to $1 billion by selling a 30% stake in the firm, according to one of the people. Bloomberg News has previously reported that the deal was likely to raise less than $1 billion.

Founded in 2009, Nupco seeks to raise the level of health services in the kingdom, improve the efficiency of government spending for the purchase of medical supplies and increase the effectiveness of supply chains in the public health-care sector, according to its website.

Nupco works to develop medical supply chains and provide services and solutions to the health sector in the Kingdom. It aims to enhance cooperation among various stakeholders to ensure efficient and effective supply chains and enables government health agencies to offer cost-effective care. Additionally, Nupco supports a new business model and approach to healthcare through integrated technology and connectivity in collaboration with hospitals and suppliers.