MD Medical Group plans IPO in London in Oct
Russian healthcare organization MD Medical Group aims to come up with an IPO and list in London in October, the news reports said. The company hopes to raise about $150 million despite a number of cancelled IPOs.
MD Medical Group is likely to announce this week its aim to sell global depositary receipts representing 30% of the company’s shares in London.
To manage the IPO, JP Morgan and Deutsche Bank have been considered. The global healthcare company plans to use the proceeds to fund its current capital spending program that includes building in the Russian city of Ufa as also for general corporate purposes.
Elena Mladova, Chief Executive said, “Funds raised from the offering will help us to expand and to take advantage of the unfulfilled demand in Russia for high-quality medical devices.”
The global heathcare company will benefit from operating in defensive sector and an economically robust emerging market. MD Medical Group runs a private maternity hospital in Moscow. It has also acquired eight outpatient clinics in 2011, almost 59% year-on-year to 851 m roubles ($28 m) in the first six months of 2012.
According to reports, the biggest test of the IPO market this year, is likely to be Direct Line, the insurance subsidiary of Royal Bank of Scotland.