HIG-backed hospital chain Kora files for $300 mln IPO in Brazil

Brazilian hospital chain Kora Saude Participacoes SA, backed by U.S. private equity firm HIG Capital, plans an initial public offering to raise roughly $300.00 million, a securities filing late on Wednesday showed.

This amount reflects the mid-point of its price range, which was set between 11.20 reais and 15.50 reais. It does not consider overallotments. The price will be set on April 28 and shares will debut on the Sao Paulo stock exchange on April 30.

Both the company and its shareholders, which include HIG, plan to sell shares in the offering. Kora plans to use the proceeds to acquire competitors, launch new hospitals and enter new segments, such as oncology.

Brazil has seen a dealmaking boom in the healthcare sector as demand has grown for services and the population ages.

Its biggest hospital chain Rede D’Or RDOR3.SA, backed by private equity firm Carlyle and Singaporean state investor GIC, successfully priced in December an IPO that valued it at more than $20 billion.

HIG acquired a stake in 2018 in Kora, which has six hospitals and 593 beds.

Itau BBA, JPMorgan, Bradesco BBI, Santander, XP Inc and UBS BB will manage the offering.

Reuters first reported that Kora was planning an IPO last year.