Business

Largest Brazilian firm IPO in 2020: Rede D'or hospital chain prices IPO at BRL 57.92 each - sources

Rede D'or and its shareholders, which include private equity firm Carlyle and Singaporean state investor GIC, raised 11.4 bilion reais in the offering, one of the Reuters' sources added

Photo: REUTERS/Ricardo Moraes
  • The deal values the company at BRL 112.5 billion ($22.02 billion), placing it among Brazil’s ten biggest companies by market capitalization;
  • The hospital chain plans to use the proceeds to build new hospitals and also to acquire new businesses, such as health insurance brokers and hospitals.

Brazil’s biggest hospital chain Rede D’or has priced its shares at 57.92 reais each in the biggest IPO by a Brazilian company this year, sources familiar with the matter said.

Rede D’or and its shareholders, which include private equity firm Carlyle Group Inc and Singaporean state investor GIC, raised 11.4 billion reais in the offering, one of the sources added.

The deal values the company at BRL 112.5 billion ($22.02 billion), placing it among Brazil’s ten biggest companies by market capitalization.

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The hospital chain plans to use the proceeds to build new hospitals and also to acquire new businesses, such as health insurance brokers and hospitals.

Rede D’or did not immediately respond to a request for comment.

Rede D’or, with 51 hospitals in Brazil, was founded in 1977 by Jorge Moll Filho as a laboratory. The company is still controlled by the Moll family.

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Rede D’or’s successful IPO comes despite a hit to its business by the pandemic, which has reduced elective medical care.

It reported revenue of 9.8 billion reais in the first nine months of 2020, in line with the same period a year earlier, but net income plunged more than 80% to 156.5 million reais.

Shares of Rede D’or will debut on the Sao Paulo stock exchange on Wednesday.