Private equity manager Abraaj Capital announced today the exit of its investment in IHH Healthcare Berhad (IHH) through an initial public offering (IPO) of one of the largest private healthcare providers in the world.
Approximately RM 6.26 billion ($2 billion) was raised in the offering, making it the third largest IPO to date this year after Facebook and Felda Global (the Malaysian palm oil producer).
The offering received strong global institutional and retail demand. Over 400 global institutional accounts participated with the institutional books more than 130x covered whilst the Singapore and Malaysia retail offers were each more than 11x and 5x covered respectively. Cornerstone investors, such as Blackrock, Capital Group, Newton Investment Management Limited, Och-Ziff Capital Management Group, Fullerton Fund Management Company (Temasek), The Government of Singapore Investment Corporation (GIC), Kuwait Investment Authority (KIA), Employees Provident Fund Board, and the International Finance Corporation (IFC) accounted for 62% of the share offering.
IHH’s debut on the Malaysian and Singaporean bourses on July 25, 2012, will mark the first ever concurrent dual listing on the Bursa Malaysia and the Singapore Stock Exchange, with IHH becoming one of the largest listed private healthcare providers in the world with an expected market capitalization of approximately RM 22.56 billion ($7.1 billion).
Arif Naqvi, Founder and Group Chief Executive of Abraaj Capital said: “Today’s announcement marks the successful conclusion of an outstanding partnership and a natural closure of the investment cycle of Abraaj Capital’s US$ 2 billion Infrastructure and Growth Capital Fund and US$ 500 million Abraaj Buyout Fund II. We are proud to have played a significant role in the success of Acibadem and IHH and to have participated in the development of one of the largest listed healthcare providers in the world. The success of this transaction makes clear that IHH remains extremely well-positioned in a fundamental and dynamic sector.”