(May 14): Manipal Health Enterprises Pvt Ltd, which runs the Manipal Hospitals chain, is set to begin formal marketing as early as next week for its planned initial public offering (IPO) to raise more than US$1 billion ($1.27 billion), according to people familiar with the matter.
The Temasek Holdings Pte Ltd-backed company is targeting a valuation of about US$12 billion during two weeks of meetings with domestic and international investors, the people said, asking not to be identified because the information is private.
Deliberations are ongoing and details of the offering including its size and timing could still change, the people said. A representative of Manipal Hospitals did not immediately respond to requests for comments.
Indian equity markets are gradually recovering from recent declines linked to geopolitical tensions in the Middle East, alongside government efforts to stabilise the fiscal outlook.
Manipal Hospitals filed its draft prospectus with India’s market regulator in March. The proposed share sale includes a secondary offering of as many as 43.23 million shares, or about a 3.66% stake, by existing investors, as well as a fresh issue of shares worth about 80 billion rupees (US$960 million or $1.06 billion), according to the filing.
Selling shareholders in the secondary portion include TPG, Temasek, Ammar Sdn Bhd, Novo Holdings Invest Asia, Phoenix Bear Investments LLC, Seventy Second Investment Company LLC and Manipal Education and Medical Group India Pvt Ltd.
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The company is working with advisers including Kotak Mahindra Capital Co, Axis Bank Ltd, and the local units of Goldman Sachs Group Inc, JPMorgan Chase & Co, Jefferies Financial Group Inc, UBS Securities and DBS Bank Ltd on the potential listing, according to the prospectus.
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