Temasek, Greenwoods back Phoenix Healthcare IPO

Beijing-based Phoenix Healthcare plans to sell 201 million shares at HK$5.88-7.38 apiece, raising up to HK$1.48 billion ($190 million) through a Hong Kong offering, according to a prospectus. The company is scheduled to start trading in main board on November 29.

In June, Green Talent, an entity controlled by Greenwoods Bloom Fund I, picked up 9.74% interest in the company for RMB150 million, while Vertex Ventures, an investment vehicle owned by Temasek, paid RMB15 million for a 0.98% stake.

The pre-IPO investors will subject to a one-year lock-up period from the date of listing. Due to the dilution effect, Green Talent's equity interest will be reduced to 7.31% post-IPO, while Vertex will hold 0.74%.

Phoenix Healthcare is China's largest private hospital group in terms of the number of beds and patient visit last year, according to a Frost & Sullivan report cited by the company. By the end of June, its network consisted of 11 general hospitals, once traditional Chinese medicine hospital and 28 clinics, with a total of 3,213 beds in operation.

The proceeds of the offering will be used for network expansion - particularly in Beijing - and repaying outstanding loan from the group's major shareholder.

According to AVCJ Research, Tiantu Capital acquired a 26% interest Phoenix Healthcare for RMB130 million in 2010. In April, Tiantu exited its investment to individual shareholder Xing Liu, also for RMB130 million.

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• Topics
• Greater China
• Exits
• Healthcare
• China
• healthcare
• IPO
• Temasek Holdings
• Hong Kong (China)