Quadrant-backed Virtus Health launches IPO

According to The Age, Virtus will seek to raise at least A$500 million ($520 million), with advisors Morgan Stanley and UBS valuing the company at up to A$682 million and A$484 million, respectively. However, IFR reported that Virtus is looking to sell 51.3-53.7 million shares at A$4.92-5.68 apiece, for a total of around A$300 million.

Quadrant owns 43% of the company alongside a group of medical professionals. The private equity firm is said to want to reduce its stake to between zero and 10%.

Quadrant Private Equity No.2, a A$500 million fund that closed in 2007, completed a management buyout of New South Wales-based IVF Australia, the country's largest group of dedicated fertility specialists, in 2008. There were subsequently two bolt-on acquisitions - Victoria-based Melbourne IVF and Queensland Fertility Group - and the combined entity was renamed Virtus Health.

The private equity firm claims to have invested a total of A$83.7 million.

It was reported last September that Quadrant had refinanced Virtus with A$225 million of debt after a sales process led by Morgan Stanley failed to find a buyer. Chris Hadley, a managing director at Quadrant, subsequently said in February that there was no pressure to list, but the firm had been approached by several brokers and was considering its options.

Virtus operates 34 fertility clinics, 16 embryology laboratories, 17 andrology labs, six diagnostic labs and six hospitals nationwide, employing 80 fertility specialists and another 650 professional support staff. It is said to have a 35% share of Australia's A$520 million assisted reproductive services market.

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• Topics
• Exits
• Australasia
• Healthcare
• Buyout
• buyout
• Exit
• Australia
• IPO
• healthcare
• Quadrant Private Equity