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3 Minutes to Read by 3 Minutes to Read by 3 Minutes to Read by 3 (Reuters) – MOSCOW, July 15 (Reuters) – European Medical Centre (EMC), a Russian healthcare company that raised $1.1 billion in its initial public offering (IPO) on Thursday, said it saw tremendous growth potential as more rich Russians seek private treatment. EMC has been providing healthcare through a network of medical centers in and around Moscow for more than three decades, and it is the second private Russian healthcare provider to issue shares, following MD Medical Group about a decade ago. EMC offered 40 million global depository receipts for $12.50 each, or 926.55 roubles, giving it a market value of $1.13 billion and falling short of its initial guidance. EMC shareholders led by Igor Shilov raised around $500 million through the sale of existing shares, leaving the corporation with a 44 percent free float. Following the IPO, Shilov kept a 55.1 percent ownership in EMC, according to the corporation. Domestic investors, some of whom were EMC clients, as well as funds from Europe, the Middle East, and the United Kingdom, bought shares, according to Boris Kvasov, co-head of equity capital markets at VTB Capital and one of the deal’s arrangers. The Russian private healthcare sector, according to EMC, has “great potential for future expansion” due to rising demand for high-end services from wealthy Russians and an aging population with longer life expectancies. It had revenue of 21.3 billion roubles ($287 million) last year, with an 18 percent compound annual growth rate for 2018-2020. According to Reuters, EMC Chief Executive Andrey Yanovsky said the company, which has invested around 440 million euros ($520 million) since 2008, has no imminent plans to issue fresh shares to raise funds. Dmitry Shmelev, EMC’s Chief Financial Officer, has stated that the company plans to pay out up to 100% of its net profit in dividends. Medsi, a chain of medical clinics, may go public at some point, according to Sistema, the company’s majority stakeholder. As the Russian stock market was affected by reduced oil prices, EMC shares began trading at 940 roubles before falling to 925 roubles. The deal’s joint worldwide coordinators and bookrunners were Citigroup, J.P. Morgan, and VTB Capital. ($1 = 0.8456 euros) ($1 = 74.1523 roubles) (Olga Popova and Alexander Marrow contributed reporting; Katya Golubkova wrote the story; David Clarke edited it.)/nRead More

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