UPDATE 1-Russia's MD Medical aims to raise $150 mln in London IPO
* Healthcare provider to offer GDRs in London in October
* To become the first Russian company in the sector to float
* Plans to expand its clinic network to meet growing demand
MOSCOW, Sept 17 (Reuters) - Russian private healthcare provider MD Medical Group (MDMG) plans to raise at least $150 million in a London initial public offering next month to fund expansion of its hospital and clinic network, it said on Monday.
MDMG, which specialises in maternity healthcare and pediatrics, would become the first Russian company in the sector to float. It joins mobile phone operator MegaFon and lender Promsvyazbank, Russian firms which this month took the first steps towards London listings.
"Funds raised from the offering will help us to expand our network and to take advantage of the unfulfilled demand in Russia for high-quality medical services," Chief Executive Elena Mladova said in a statement.
Russia's healthcare system is still largely reliant on Soviet-era infrastructure and technologies, but privately-run clinics have grown in number significantly over the past decade.
MDMG was founded in 2003 and runs nine medical centres. Its majority shareholder and chairman is Mark Kurtser, a senior Moscow doctor.
Its 2011 revenues grew 42 percent to 2.91 billion roubles ($95.46 million), and net income increased 26 percent to 924 million roubles.
MDMG said the target free float, excluding the over-allotment option, is expected to be about 30 percent of its enlarged share capital.
The shares will be offered by MD Medical Group Investment Plc., the firm's Cyprus-incorporated parent company, in the form of global depositary receipts, with one GDR equating to one ordinary share.
JPMorgan and Deutsche Bank are acting as joint bookrunners of the offering, the company said.
- Air strike kills 15 civilians in Yemen by mistake: officials
- Pope attacks mega-salaries and wealth gap in peace message
- North Korea says Jang Song Thaek, uncle of leader Kim Jong Un, executed
- North Korea executes leader's powerful uncle in rare public purge |
- Probation for drunk Texas teen driver who killed four sparks backlash