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MedLife shares start trading on the Bucharest Stock Exchange following the largest IPO of a private company

12/21/2016

The shares of Romania’s largest private healthcare services provider, MedLife (M), started trading on the Bucharest Stock Exchange (BVB) on December 21, 2016, following the successful completion of the largest Initial Public Offer (IPO) of a private company that has ever taken place on the Romanian capital market. The first trades were done at RON 26 / share.

‘We have a new and modern market which is now ready to absorb large transactions more than ever in the past. BVB is a new brand today, a new point of interest for local and foreign investors. BVB is about keeping constant connections with the brokerage firms and private companies. That is why I am not surprised that MedLife has successfully listed on the stock exchange. Events of such magnitude simply had to happen,’ said Ludwik Sobolewski, CEO at the Bucharest Stock Exchange. 

‘This is by far the most important signal we can send to Romanian investors and entrepreneurs to boost their confidence. They are not stepping on thin ice here but rather have access to solid capital on the stock exchange,’ stated the BVB Chairman, Lucian Anghel. ‘It is a giant step for the local capital market. We strongly expect the success of MedLife will soon be followed by more and more entrepreneurs who will see in the Romanian capital market a reliable partner to develop their businesses’, he added.

MedLife, founded in 1996, operates the largest private clinics’ network, several medical laboratories, general and specialists hospitals in Romania. The total value of the IPO amounted to RON 230 million or some EUR 50.5 million for a 44% stake in MedLife. The investment fund Value4Capital Eastern Europe Holdings (V4C) sold a 36.25% stake in the company, while the International Finance Corporation (IFC) sold 7.75%. MedLife’s IPO was intermediated by Raiffeisen Bank as leader of the consortium and Wood&Co.

‘We are proud that MedLife has become the first truly private growth company to be listed in Bucharest and we believe the first successful private equity exit through this route. MedLife was already a leader in private healthcare and is now showing the way for other successful, growth companies in the capital markets.  From our decision to pursue this exit route in September, the listing was achieved in under four months, a strong proof to the professionalism of all the legal and financial teams involved and the functioning of the Stock Exchange and regulatory authorities. MedLife has proven the public market is open for growth businesses in Romania,’ said Bill Watson, Managing Partner of V4C.

‘IFC has been an investor with MedLife for 10 years, MedLife is our important partner in expanding access to quality healthcare services in Romania. Post IPO, IFC will remain a shareholder in MedLife and we hope that the company’s growth will continue to promote a stronger Romanian health system’, said Ana Maria Mihaescu, IFC Chief Resident Representative for Romania, Bulgaria, Czech Republic, Hungary, Moldova, Poland and Slovakia. ‘IFC remains committed to development of the private health sector and capital markets in Romania, as evidenced by this IPO transaction at the Bucharest Stock Exchange’, added Ana Maria Mihaescu.

The IPO consisted of 8.8 million shares which were sold in two tranches: 85% to institutional investors between the 6th and 15th of December and 15% to retail investors who subscribed during 7th to 15th of December. The final share price from the IPO was set at RON 26 for institutional investors, RON 24.7 for private individuals who subscribed during the first four days and RON 26 for the remainder. For the first trading day, the shares will not have a variation limit. At RON 26 per share, MedLife has a market capitalization of RON 522.4 million.

 

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Bucharest Stock Exchange runs markets for shares, bonds and other instruments, through regulated platforms and alternative systems, and provides a wide range of services to participants of financial markets.Bucharest Stock Exchange is a public company, listed on its own market since 2010. For more information refer to www.bvb.ro.

For further information: Daniela Serban, Director IR&PR, +4.0742.242.662, comunicare@bvb.ro.