Russian healthcare group EMC plans Moscow IPO By Reuters

MOSCOW (Reuters) -Russian private health clinic operator European Medical Centre (EMC (NYSE:)) is planning an initial public offering (IPO) on the Moscow Exchange, the company said on Monday.

Financial market sources told Reuters last month the company was considering an IPO as soon as this summer and could raise about $500 million. Chief Executive Andrei Yanovsky said this month the firm was always ready to turn to capital markets for funds.

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

EMC said Shilov would remain a significant shareholder in the company after 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%.

“The Russian healthcare market has been growing at a rapid clip for several years, with the paid services segment expanding at the fastest pace,” Yanovsky said in a statement.

He said Russia’s market for healthcare services was undervalued and therefore attractive going forward.

Citigroup (NYSE:) 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 said.

Russia’s IPO market has been resurgent in recent months, with online retailer Ozon, low-cost retailer Fix Price and forestry group Segezha all listing since November.

But a decision by gold producer Nordgold to postpone a potentially multi-billion London debut listings has raised concerns that the fastest flurry of Russian stock-market listings under the sanctions era has run its course.

($1 = 72.2060 roubles)