Shares in PE-backed Healthscope climb 5.2% on ASX debut

Last week, shares were sold to investors at A$2.10 each, above the midpoint of a marketed range. The IPO represented a partial exit for TPG and Carlyle who together sold 311.5 million shares via the offering leaving them with a collective 32.5% stake in the company.

The pricing - which valued the company at A$3.83 billion ($3.6 billion) - represented a premium to the A$1.99 billion the two GPs paid to take the company private in 2010, 

Healthscope operates more than 4,500 inpatient beds in 33 hospitals, four dedicated mental health hospitals and four rehabilitation centers across Australia, as well as managing three hospitals on behalf of ACHA Group. It also owns and operates around 60 medical centers and specialist skin clinics.Operations stretch to pathology, with services provided in Australia, New Zealand, Singapore and Malaysia, and residential and attendant care in Australia. 

According to the prospectus, Healthscope will use A$2.4 billion from the sale proceeds to pay down debt. It also said the listing will give the company added flexibility to pursue further growth opportunities in Asia. The company posted EBITDA of A$328.1 million for the year ended June 2013, up 8.3% year-on-year, while revenue increased 4.5% to A$2.2 billion.

The transaction represents the biggest IPO since October 2010, when rail operator Aurizon Holdings raised A$4.3 billion. AVCJ Research data shows that Australia has had 11 PE-backed IPOs so far this year - including Healthscope - raising a total $5.2 billion. This is around double the $2.6 billion raised for the whole of last year over nine offerings.

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• Topics
• Australasia
• Exits
• Healthcare
• TPG Capital
• The Carlyle Group
• Australia
• IPO
• Exit
• healthcare