Price guidance for MD Medical Group's IPO comes to $11.25-$13.5 per GDR, capitalization - up to $995 mln
MOSCOW. Oct 1 (Interfax) - MD Medical Group Investments Plc, which owns the Russian chain of clinics Mat I Ditya, has announced the price guidance for its global depository receipts (GDRs) in the framework of the company's IPO.
The company said in a statement that the GDRs will be placed between $11.25 and $13.5.
The total transaction will come between $295 million and $343 million including an option for oversubscription (15% of the total IPO).
MD Medical Group plans to sell $150 million in new shares through the IPO. The sole owner in the company, MD Medical Holding Ltd, is selling existing shares.
Based on the price guidance, the entire company can been valued at $855 million-$995 million. The free float will come to around 35%.
The company plans to use the funds from its IPO to finance capex, including the construction of a clinic in Ufa.
Deutsche Bank and J.P. Morgan are the IPO organizers.
MD Medical Group includes nine clinics. The leading shareholder in the company is its head obstetrician-gynecologist, Mark Kurcer. According to Frost & Sullivan's estimates, the company ranked second in Russia in terms of revenue among medical companies with annual revenue at 2.9 billion rubles.
The company's EBITDA in the first half of 2012 came to 851 million rubles, up 59% year-on-years while sales revenue rose by 48.6% to 1.96 billion rubles. Furthermore, net profit increased by 83.9% to 728 million rubles. Net debt at the end of June totalled 1.66 billion rubles.