12th Oct 2015 06:53
LONDON (Alliance News) - Bank of Georgia Holdings PLC is set to spin off its healthcare subsidiary in a float on the London Stock Exchange, according to statements on Monday.
Georgia Healthcare Group PLC intends to raise USD100 million when it floats on the exchange, while Bank of Georgia Holdings wants to sell an unspecified number of existing shares through its intermediate holding company.
A further 10% of the total number of shares being sold under the offering will be made available to shareholders by Bank of Georgia Holdings in the form of an over-allotment option.
Bank of Georgia Holdings is looking to crystallise its investment in the healthcare subsidiary, according to Chief Executive Irakli Gilauri, who acts as chairman to Georgia Healthcare Group.
"Georgia's healthcare reform had just started and even today, Georgia's current healthcare industry is in a very early stage of development, where capital and management resources are limited. It reminds me of the banking industry 10 years ago," Gilauri said in a statement.
"GHG is now institutionalising best practices in the Georgian healthcare industry, just as we have done in banking. However unlike in banking, competition in the Georgian healthcare industry is limited. We believe that GHG has significant upside through having a first mover advantage, first class management team and access to capital," Gilauri added.
The group expects Georgia Healthcare to be included in the FTSE All-Share Index once it achieves its premium London listing.
"At IPO, I personally, along with many of my colleagues on the board and management team, intend to invest," Gilauri said.
Georgia Healthcare Group Chief Executive Nikoloz Gamkrelidze said the IPO will enable the healthcare company to finance its immediate growth plans, as well as giving it access to capital markets for the future growth.
"We are targeting to increase our market share within the GEL2.1 billion healthcare services market in 2015E through revenue enhancement at our hospitals where our current market share is 17.6% of the GEL1.2 billion hospital services market. GHG is also expanding into the GEL0.9 billion ambulatory clinics services market, where our current market share is close to zero," Gamkrelidze said.
By Samuel Agini; [email protected]; @samuelagini
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