Russian healthcare firm EMC sets IPO pricing, valued up to $1.26 billion

A board with the logo of Russian private health clinic operator European Medical Centre (EMC) is on display on the roof of a building in Moscow, Russia May 31, 2018. REUTERS/Tatyana Makeyeva/Files

MOSCOW (Reuters) – Russian private health clinic operator European Medical Centre (EMC) on Wednesday said the indicative price range for its July initial public offering (IPO) in Moscow has been set at $12.5-14 per GDR, giving it an equity value of up to $1.26 billion.

Financial market sources told Reuters in May the company was considering an IPO as early as this summer and could raise about $500 million.

EMC said the offering, which amounts to up to 40,000,000 global depositary receipts (GDR) and would give EMC a free float of about 44%, is expected to be announced on or around July 15.

Certain existing shareholders, including Igor Shilov, who now holds a 71.2% stake in EMC, will sell GDRs in the company. EMC will not sell any GDRs in the offering, nor will it receive any proceeds.

EMC has said Shilov will remain a significant shareholder in the company after the offering.

Citigroup Global Markets Ltd, J.P. Morgan AG and VTB Capital PLC are acting as joint global coordinators and joint bookrunners in connection with the offering.

EMC, which operates a network of medical centres in and around Moscow, reported revenue of 21.3 billion roubles ($295 million) last year, with a compound annual growth rate for 2018-2020 of 18%.

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