Healthcare tourism

8 March 2012 By Una Galani, Chris Hughes Follow @ugalani

Abu Dhabi medical group NMC wants to raise $250 mln in a London IPO. The move would connect a firm with a clear growth story to an investment community that understands healthcare. But qualms over governance and stock overhangs mean a big discount may be needed to get it away.

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UAE healthcare provider NMC Health, founded by billionaire Indian entrepreneur B.R. Shetty, plans to raise up to $250 million by offering an additional 30 percent of its capital in an initial public offering on the London Stock Exchange.
Abu Dhabi-based NMC, one of the largest private sector healthcare providers in the United Arab Emirates, operates general and specialised hospitals, pharmacies and medical centres.
NMC said it will use proceeds from the IPO and a $150 million credit facility to finance expansion plans. These include the acquisition of a medical centre in Dubai by July, the development of a maternity hospital in Abu Dhabi scheduled to open by the second half of 2012. It also plans to construct a hospital in Abu Dhabi by 2014.
NMC expects to price the IPO by the end of March or early April, a banking source working on the deal told Reuters. The issue could involve an over-allotment, or greenshoe, option amounting to 15 percent of NMC’s share capital if demand is strong, the source added, speaking on condition of anonymity. Since early 2011, NMC has been controlled by investor Saeed Bin Butti Alqubaisi, who holds a 43 percent stake. His investment firm holds a further 12 percent.
In January, UAE Exchange sold a 40 percent stake to Centurion Investment for $2 billion. Centurion is owned by Saeed Bin Butti Alqubaisi. UAE Exchange was also previously owned by Shetty.

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