SAO PAULO, March 31 (Reuters) – Brazilian hospital chain Care has submitted an initial public offering of around 790.5 million reais ($ 139.42 million), amid a boom in deals in Brazil’s health care sector, according to a securities filing on Wednesday.
The Treatment Plan for the IPO follows a series of stock offerings by the hospital operator. Rede D’Or successfully completed an IPO of 11.4 billion reais in December and rivals such as Kora Saude Participacoes and Dasa are expected to complete a share offering in the coming weeks.
Rising demand for services and an aging population have sparked a deal in Brazil’s health care sector, Reuters previously reported.
Hospital Care and its shareholders plan to sell at least 31 million shares of between 22.50 reais and 28.50 reais. If the entire stake is sold, the bid can increase by 35%. Prices will be set on April 20.
The hospital operator owns, among its shareholders, Brazilian private equity firm Crescera and Elie Horn, founder of Cyrela homebuilder.
It operates 11 hospitals, with 1,206 beds, and also sells healthcare packages, in a similar business model to Hapvida and Notre Dame Intermedica.
Itau BBA, BTG Pactual, Bank of America, XP, Safra and UBS BB will manage the offering. ($ 1 = 5,6700 reais) (Reporting by Aluisio Alves, written by Carolina Mandl; editing by Diane Craft)