Russia’s MD Medical Nets $311M in London Float

Russian private healthcare company MD Medical Group‘s London share listing made a smooth start on Friday, Reuters reported. The health clinc and hospital operator said it expected the sale of new and existing shares to raise $311 million, assuming an over-allotment option was taken up, and put its market capitalisation at around $900 million. Russia’s state-backed private equity fund RDIF, funds of asset manager BlackRock, private equity firm Siguler Guff’s Russia Partners, and others spent $50 million in the share offer, Reuters wrote.

(Reuters) – Russian private healthcare company MD Medical Group’s London share listing made a smooth start on Friday, with the global depositary receipts (GDRs) trading at a 2 percent premium to their issue price of $12.

The health clincs and hospital operator said it expected the sale of new and existing shares to raise $311 million, assuming an over-allotment option was taken up, and put its market capitalisation at around $900 million, with a free float of about 35 percent.

Russian firms have been jostling to take advantage of the recent rally in stock markets, with the MDMG sale coming just weeks after the Russian state raised 159 billion roubles ($5.1 billion) from the sale in London and Moscow of a 7.6 percent stake in Sberbank (MCX: SBER03.ME – news) , the country’s biggest bank.

MegaFon, the country’s second biggest mobile operator, is expected to raise up to $2 billion in a London and Moscow offering before the end of the year, while lender Promsvyazbank has plans to raise around $400 million in a London-Moscow offering.

MDMG’s sale proceeds included $150 million from new GDRs which the company says will fund its expansion in Russia, with existing shares sold by MD Medical Holding Ltd, which is owned by the group’s founder and chairman Mark Kurtser.

MDMG’s current facilities include a hospital and eight outpatient clinics in Moscow, Perm, St. Petersburg and Ufa, as well as a number of franchised out-patient clinics.

Russia’s state-backed private equity fund RDIF, funds of asset manager BlackRock (NYSE: BLK – news) , private equity firm Siguler Guff’s Russia Partners, and others spent $50 million in the share offer, according to a statement issued by the RDIF.

Deutsche Bank (Xetra: 514000 – news) and JPMorgan were joint global coordinators and joint bookrunners on the MDMG deal. ($1 = 31.0190 roubles) (Additional reporting by Megan Davies; Writing by Katya Golubkova and Megan Davies; Editing by Dan Lalor and Greg Mahlich)