Source: EMC clinic chain’s IPO seen at $12.5 per GDR

MOSCOW, Jul 13 (PRIME) -- United Medical Group CY, manager of a Russian private clinic chain European Medical Center (EMC), may float its shares in an initial public offering (IPO) at a price of U.S. $12.5 per global depositary receipt (GDR), a financial source told PRIME on Tuesday.

The bidding book is full. “Demand exceeds the deal’s amount. The placement price is expected at $12.5 per security,” the source said.

The preliminary price ranged between U.S. $12.5 and 14 per GDR. EMC’s shareholders offered up to 40 million GDRs for the IPO, which will translate into free-float of 44% after the deal. The price range values the company at $1.125–1.26 billion and the selling shareholders can raise $500–560 million.

The securities will be offered by INS Holdings Limited, whose beneficial owner is Igor Shilov, controlling 71.2% of the company, Hiolot Holdings Limited, whose beneficial owner is Yegor Kulkov with 20.8%, and Greenleas International Holdings LTD with Roman Abramovich as a beneficial owner and a shareholding of 6.9%.

Citigroup Global Markets Limited, J.P. Morgan AG and VTB Capital Plc are the co-global coordinators and the co-bookrunners. Announcement of the placement price and the start of trade in GDRs on the Moscow Exchange are expected to happen around Thursday.

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