26th Oct 2015 07:41
LONDON (Alliance News) - Bank of Georgia Holdings PLC's healthcare subsidiary Georgia Healthcare Group PLC announced the expected price range of its upcoming initial public offering, giving it an expected market capitalisation of between USD397 million and USD535 million.
Georgia Healthcare gave a price range of between 215 pence and 315 pence for its initial public offering. The final pricing will be announced on or around November 6, and it expects to be admitted to trading on or around November 11.
It expects to raise proceeds of around USD100 million through the issue of between 28 million and 45 million shares, a free gloat of between 25% and 38%. There will en over-allotment options of up to 10%, granted by Bank of Georgia.
The company will use the proceeds to renovate and develop its recently acquired Deka and Sunstone hospitals in Tbilisi, the capital of Georgia, to finance its current expansion plans, reduce its existing level of debt, and pay the remaining purchase price of its acquisition of a 50% share in HTMC Hospital.
"We are pleased with the level of institutional investor interest we're seeing at this early stage of the IPO process, from both healthcare and non-healthcare sector investors, as well as existing shareholders of our parent BGH. We believe the dynamics of the Georgian healthcare market provide long-term growth opportunities and that GHG, a market leader operating a business model with cost and synergy advantages, is well positioned to take advantage of the significant market growth prospects," said Chief Executive Officer Nikoloz Gamkrelidze.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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