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Large Cap
Market Cap £2.70bn
Enterprise Value £10.24bn
Revenue £7.34bn
Position in Universe 271st / 1783

Russian healthcare provider EMC valued at $1.1 bln in IPO

Thu 15th July, 2021 11:46am
By Olga Popova and Alexander Marrow
    MOSCOW, July 15 (Reuters) - Russian healthcare provider
European Medical Centre (EMC)  GEMCDR.MM , which was valued at
$1.1 billion in its initial public offering (IPO) on Thursday,
said it sees strong potential for growth as more wealthy
Russians seek private healthcare.
    EMC has been offering healthcare through a network of
medical centres in and around Moscow for over three decades and
is the second private Russian healthcare provider to list shares
after MD Medical Group  MDMGq.L  nearly a decade ago.
    EMC offered 40 million global depository receipts at $12.50,
or 926.55 roubles, apiece, which was at the lower end of its
initial guidance and gave it a market value of $1.13 billion.*:nL2N2OJ09Y 
    The sale of existing shares raised about $500 million for
EMC shareholders led by Igor Shilov and left the company with a
free float of 44%. Shilov retained a 55.1% stake in EMC
following the IPO, the company said.
    Boris Kvasov, co-head of equity capital markets at VTB
Capital and one of the deal's arrangers, said in a statement
that domestic investors, some of which were EMC clients, as well
as funds from Europe, the Middle East and Britain bought shares.
    EMC said it saw "strong potential for future growth" for the
Russian private healthcare market amid increasing demand for
high-end services from wealthy Russians and an ageing population
coupled with rising life expectancies.
    It reported revenue last year of 21.3 billion roubles ($287
million) with a compound annual growth rate for 2018-2020 of
    EMC Chief Executive Andrey Yanovsky told Reuters that the
company, which has invested about 440 million euros ($520
million) since 2008, did not have any immediate plans to offer
new shares to raise cash.
    Chief Financial Officer Dmitry Shmelev also said that EMC
intends to pay out up to 100% of its net profit in dividends.
    The Medsi chain of medical clinics may also go public at
some point, its shareholder Sistema  AFKS.MM  has said.*:nFWN2MK1DM
    EMC shares debuted at 940 roubles before dipping to 925 as
the Russian stock market was hit by lower oil prices.*:nL1N2OR0JL
    Citigroup, J.P. Morgan and VTB Capital acted as joint global
coordinators and joint bookrunners for the deal.
   ($1 = 74.1523 roubles)
   ($1 = 0.8456 euros)

 (Reporting by Olga Popova and Alexander Marrow; Writing by
Katya Golubkova; Editing by David Clarke)
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