NewQuest, GIC set for partial exits from China’s iKang

According to a regulatory filing, iKang will sell approximately 10.9 million new and existing American Depository Shares priced at $12-14 apiece. NewQuest will sell around 783,000 shares, reducing its holding from 6.1% to 2.1%, pre-overallotment option, while GIC Private will see its stake drop 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%.

Set up in 2004, Beijing-based iKang, provides medical examination services across a network of 42 medical centers. It 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.

IKang, which claims to hold a 12.3% share of China's private preventative healthcare services market, plans to use the proceeds from the offering to finance potential acquisitions and build new medical centers.

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.

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• Topics
• Healthcare
• Greater China
• Exits
• NewQuest Capital Partners
• China
• healthcare
• GIC Private
• Goldman Sachs
• IPO
• Exit