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Romania's MedLife raises 230 mln lei (50.8 mln euro) in IPO
Romanian privately-owned medical services provider MedLife raised 230 million lei ($53.3 million/50.8 million euro) through a fully subscribed initial public offering (IPO) of a 44% stake and will start trading on the Bucharest Stock Exchange (BVB) on December 21, the bourse said on Friday, quoted by seenews.com..
MedLife launched the IPO on the BVB on December 7, hoping to raise up to 308 million lei.
The company offered investors 8.8 million shares. The final price in the IPO was 26 lei per share.
The final price implies market capitalization of 522.4 million lei of MedLife, the BVB said in a press release.
The retail investors' tranche was oversubscribed four times, it added. BVB said earlier that some 85% of the offering would target institutional investors.
Private equity fund Value4Capital (V4C) sold its entire stake of 36.25% in MedLife, while the International Finance Corporation (IFC), the World Bank's private sector arm, sold a 7.75% stake, part of its 12.75% holding in the company.
Following the offering, the Marcu family, who founded the healthcare services network, will hold an interest of 51% in MedLife’s share capital and IFC will hold a minimum interest of 5%. The free float is expected to be up to 44%.
Trading in MedLife's shares on the BVB under the symbol "M" is expected to start on December 21. The stock price stabilization period will end no later than 20 January 2017, the bourse said.
As of September 30, MedLife operated 36 clinics, 8 general and specialist hospitals, 24 laboratories with more than 143 sampling points, nine pharmacies, eight dental offices and served over a half million clients of healthcare prevention packages throughout Romania.
MedLife's net profit plummeted 99.5% on the year in the first nine months of 2016 to 43,138 lei, while its turnover jumped 27% to 361.4 million lei, according to data posted on the BVB's website.
In March, the company said it plans to spend 56 million euro by the autumn of 2017 on acquisitions and mergers, as well as on two new clinics and a hospital. The company signed a credit agreement for the full amount of the planned investment with a syndicate of banks led by Banca Comerciala Romana, BCR, which also includes ING Bank, Raiffeisen Bank and BRD-Groupe Societe Generale.
Earlier this year, MedLife took over local dental clinics network Dent Estet for an undisclosed sum and local laboratories and clinics network Diamed Center for 3 million euro.
In 2015, MedLife bought a majority stake in the group of companies SAMA & Ultratest, the stem cell bank Stem Cells Bank, the Prima Medical Center in Craiova, and two laboratories - in Iasi and Constanta.
MedLife's expansion began in 2010 when it bought 80% of Policlinica de Diagnostic Rapid group in Brasov for 3 million euro. In 2012, MedLife bought Genesys Arad medical group and Eva Maternity in Brasov.