Russian healthcare firm MD Medical has announced the price range for the forthcoming flotation of its global depositary receipts (GDRs) on the London Stock Exchange.
The GDRs will be offered at a price somewhere between $11.25 and $13.50 each. The total size of the offering is expected to be between $295m and $343m, of which $150m will be new shares issued by the company with the rest being shares currently held by the company's sole shareholder, MD Medical Holding.
Based on the price range, the market capitalisation of the company at the commencement of dealings is expected to be between $855m and $995m.
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There is an over-allotment option which will allow for the issue of additional shares if the demand is there. Assuming full exercise of the over-allotment option, the free-float - the shares not retained by committed long-term stakeholders - is expected to be in the region of 35% of the issued ordinary share capital of MD Medical.
Money raised from the flotation will be used to finance the company's current capital expenditure programme, including the construction of a hospital in Ufa, the capital city of the Republic of Bashkortostan in Russia.
"MD Medical Group enjoys a leading position and strong brand recognition in a market where demand significantly outstrips supply. The IPO [flotation] proceeds will enable us to further develop our network of healthcare centres and selectively enhance our service offering, while the London listing allows investors to gain exposure to a growing industry in one of the world's most attractive emerging economies," said Elena Mladova, the Chief Executive Officer of MD Medical Group.
The group has seen solid top-line growth in recent years, with 2009 revenue of 1,790m rubles rising to 2,044m rubles in 2010 and 2,908m rubles in 2011.
Earnings before interest, tax, depreciation and amortisation over the same period has grown from 955m rubles to 1,089m rubles in 2010 and 1,292m rubles in 2011.
Net debt at the end of 2011 stood at 1,059m rubles.
The group operates nine modern healthcare facilities, including a hospital and eight out-patient clinics in Moscow, St Petersburg, Ufa and Perm. In addition, two franchised outpatient clinics operate in Kyiv and one franchised out-patient clinic in Irkutsk.
At the end of 2011 it employed around 1,350 medical specialists and staff.
JH
