(Adds detail on deal)
LONDON, July 18 British hospital group Spire
Healthcare opened up slightly at 211 pence a share in
its London stock market debut, after pricing at 210 pence, the
bottom of the range and valuing the firm at 842 million pounds
Spire, which is owned by European private equity firm Cinven
, is raising gross proceeds of 315 million pounds
through the sale of new shares to pay down debt. The original
price range was 210-300 pence a share, later narrowed to 210-220
Cinven, which still holds 61.9 percent of the company,
created Spire in 2007 through its purchase of the hospital
business of private healthcare group Bupa. It paid 1.4 billion
pounds for the business, including a hefty debt burden.
Spire is Britain's second-largest private hospital chain,
and generated earnings before interest, tax, depreciation and
amortisation (EBITDA) of 154.1 million pounds in 2013 after
However the investment has been a tricky one for the private
equity fund, with investors concerned at the company's reliance
on contracts with Britain's National Health Service (NHS).
Spire is also facing claims from hundreds of patients
following the PIP breast implant scandal, which has already led
to it voluntarily replacing all implants.
The listing is one of the last major deals to come before
the traditionally quiet summer break, after a glut of European
stock market debuts this year which saw levels more than triple
compared with the same period last year.
JP Morgan, Bank of America Merrill Lynch and
Morgan Stanley are joint global co-ordinators. JP Morgan
and Morgan Stanley are also acting as joint sponsors. Numis
is co-lead manager.
(Reporting by Freya Berry; Editing by William Hardy and Pravin