PE-backed iKang Healthcare jumps 8.6% on US debut
Shares in iKang Healthcare Group – the Chinese healthcare services provider whose backers include GIC Private, Goldman Sachs and NewQuest Asia – climbed 8.6% on their NASDAQ trading debut following a $153 million IPO.
The company sold 10.9 million American Depositary Shares (ADS) at $14 apiece, the top end of its indicative range. On commencement of trading, the stock reached $17.25 before eventually closing at $15.20.
NewQuest Capital and GIC both made partial exits through the offering. NewQuest sold around 783,000 shares, reducing its holding from 6.1% to 2.1%, while GIC Private lowered its stakes from 14.6% to 10.3% through the sale of 600,000 shares.
Goldman Sachs is not making a partial exit in the IPO but will be diluted from 13% to 10.8%.
Meanwhile, Best Investment Corporation, an investment vehicle controlled by China Investment Corporation (CIC), bought $40 million worth of Class A common shares in iKang, representing a 4.6% stake. Class A shares, which aren't publicly traded, each equal two iKang ADS.
CIC is subject to a 180-day lock-up period.
Set up in 2004, Beijing-based iKang, provides medical examination services across a network of 42 medical centers. It claims to hold a 12.3% share of China's private preventative healthcare services market.
The company served 1.7 million employees from 11,200 corporate customers in 2012 plus a further 206,000 individual customers. The company's corporate customer base includes 189 multinationals ranked in the Fortune Global 500.
NewQuest acquired its stake in iKang - then known as ShanghaiMed Healthcare - in 2007 as part of a consortium of early-stage investors that participated in a $22 million funding round. NewQuest was at the time the captive private equity arm of Merrill Lynch; it spun out in 2011.
Other early investors included ePlanet Ventures, WI Harper, Walden International and Shanghai Ventures. GIC and Goldman jointly invested $100 million in iKang last April.
The company reported a net loss of $75 million for the year ended March 2013, compared to a profit of $4.6 million in 2012. This was put down to acquisitions of new medical centers. Revenues jumped from $93.7 million to $133.9 million over the same period.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.