November 1, 2017 / 10:31 AM / a year ago

Russia's MD Medical says no new share sale if price below $12

MOSCOW (Reuters) - Russia’s MD Medical Group will not proceed with a secondary public offering if the shares cannot fetch at least $12, Mark Kurtser, its main shareholder and chief executive, told Reuters.

“We do not rule out a secondary public offering - primarily if we see good M&A deals... But we can only do it if the price is not lower than $12 per share,” Kurtser said in a phone interview.

In 2012, MD Medical, which specializes in fertility treatments and maternity care, became the first Russian company in the sector to float when it listed on the London Stock Exchange, pricing shares at $12.

The company has been talking for two years about a possible secondary offering.

Since 2012, it has cut debt, acquired and built a number of clinics and hospitals and boosted turnover by 200 percent.

Its shares trade at around $10.40. Analysts at VTB Capital say that implies a 50 percent discount to its emerging market peers, based on a forecast of its 2018 enterprise value to core earnings ratio.

A share sale could help speed up expansion, Kurtser said. He also did not rule out that he could sell some of his own shares to help increase the free float.

The company plans around 6 billion roubles ($103 million) in capital expenditure next year, some 70 percent of which is likely to be financed with loans and 30 percent with its own funds, Kurtser said.

Reporting by Olga Popova and Maria Kiselyova; editing by Jason Neely

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