PE-backed Monash IVF loses momentum after $298m IPO

Monash is the country's second-largest IVF company after Virtus Health, which went public last June, raising A$338.7 million. The IPO facilitated a full exit for majority owner Quadrant Private Equity.

Monash sold 170.7 million shares at A$1.85 apiece, the top end of the indicative range. The stock opened at A$1.96 - up 6.5% on the IPO price - on Thursday before settling back to A$1.90. As of mid-afternoon trading on Friday, Monash shares had slipped by 5.5% to A$1.80.

There was strong demand for the Monash IPO, prompting Ironbridge to increase the size of the offering and reduce its 51.1% stake to 5% as opposed to the 10% initially planned. The private equity firm received proceeds of A$168.4 million from the offering. Management and doctors employed by Monash also took money out of the company as part of incentive plans. They retain 1.1% and 18.3%, respectively.

According to AVCJ Research, Ironbridge and US-based Horizon Health picked up a 61% stake in Monash in 2009, with AXA Private Equity - now known as Ardian - and Pantheon also participating as co-investors. The transaction, worth $123 million, facilitated the exit of Allegro Private Equity.

Monash's origins can be traced back to the 1970s in the scientific and medical departments of Monash University and the University of Adelaide. The company now provides fertility services to patients through 12 permanent clinics, six satellite clinics, six ultrasound facilities, two specialized diagnostics laboratories and one day hospital. It also has a fertility clinic in Malaysia.

Pro forma revenue came to A$96.3 million in 2013 fiscal year, up from A$89.8 million the previous year, with net profit rising from A$15.2 million to A$18.3 million over the same period. The company projects revenue of A$112.1 million in 2014, with net profit of A$22 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Exits
• Australasia
• Healthcare
• Buyout
• Ironbridge Capital
• healthcare
• Exit
• IPO
• Australia