By Andrei Skvarsky.
The European Medical Center, a private clinic in Moscow, has announced that it plans an initial public offering (IPO) with Citigroup Global Markets Ltd, J.P. Morgan and VTB Capital acting as joint global coordinators and joint bookrunners.
The European Medical Center (EMC) is the brand used for the clinic by its owner, Cyprus-domiciled United Medical Group CY PLC.
The IPO, to be held on the Moscow Exchange, would involve floating global depositary receipts (GDRs) representing ordinary shares in United Medical Group, EMC said in a statement.
The main GDR sellers would be London-headquartered INS Holdings, which owns a stake of about 70 per cent in the Cyprus-based firm, and two companies domiciled in the British Virgin Islands – Hiolot Holdings Limited and Greenleas International Holdings Ltd.
Hiolot owns about 20 per cent of United Medical Group’s capital. Greenleas, which is owned by Russian tycoon Roman Abramovich, holds a stake of about 7 per cent in it.
EMC’s has reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of 97.3m euros ($113.8m) for 2020.
EMC made a profit of 80.6m euros ($94.3m) for that year, the clinic said without specifying whether this was a pre- or post-tax sum but explaining that it was an amount before the deduction of administrative and other expenses and that it did not include construction revenue.
EMC, which is a chain of out- and inpatient facilities in and outside Moscow offering a diversity of services and claims to base its treatment on Western methods, was set up in 1989 to cater to foreigners living in Moscow but afterwards began to treat Russians as well.
Today Russian high-net-worth individuals form the core of its clientele.
EMC argues that the ageing and growing life expectancy of Russia’s population and the country’s comparatively low state health expenditure result in more demand for paid medical services.
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