Growth investor Abraaj Capital has exited healthcare provider IHH
Healthcare Berhad through an IPO. Approximately RM6.26 billion ($2 billion) was
raised in the offering, making it the third largest IPO to date this year after
Facebook and Felda Global (the Malaysian palm oil producer).
PRESS RELEASE
Abraaj Capital, a leading private
equity manager investing in global growth markets, announced today the exit of
its investment in IHH Healthcare Berhad (IHH) through an initial public
offering (IPO) of one of the largest private healthcare providers in the world.
Approximately RM 6.26 billion
(US$ 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 per
cent 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 (US$
7.1 billion).
Abraaj Capital’s original
investment in Acibadem in 2007 and subsequent investment in IHH made through
its Infrastructure and Growth Capital Fund and Abraaj Buyout Fund II was
predicated on a strong belief that rapid demographic changes occurring across
the region, coupled with rapidly rising incomes, would lead to increasing
demand for quality healthcare which the public sector alone could not provide.
Under the stewardship of Abraaj
Capital, Acibadem became one of Turkey’s largest private healthcare groups,
expanding its presence from 6 to 14 hospitals and increasing bed capacity from
750 to 1850 beds, in the space of four years. During the same period, EBITDA
more than tripled and 5,000 new jobs were created bringing value to wider
stakeholders. The strategic involvement of Abraaj Capital in its partner
companies has continued through its investment in IHH and resulted in the
successful start of integration activities between Acibadem and IHH,
contributing further to the development of the healthcare industry in high
growth markets.
Speaking on the occasion, 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.” Omar Lodhi, Senior Partner and Asia Regional Head, Abraaj Capital, who
served on the Board of IHH, noted: “IHH’s successful IPO validates our philosophy
of investing in high-growth regions and high-impact sectors. We want to thank
the management team at IHH, as well as the team at Khazanah and Mitsui, with
whom we have worked very closely in our collective drive to create long-term
value and global best practice in the healthcare sector”.
Tan Sri Dato’ Azman Hj Mokhtar,
Managing Director, Khazanah Nasional Bhd, said: “We would like to express our
appreciation to Abraaj Capital for their important role in facilitating a
highly successful IPO. We have enjoyed the partnership with Abraaj Capital and
congratulate them for their contribution in growing Acibadem to be a world
class healthcare business and now a significant part of IHH.” BofA Merrill
Lynch, CIMB and Deutsche Bank acted as the Joint Global Co?ordinators and,
together with Credit Suisse, DBS Bank and Goldman Sachs, Joint Bookrunners for
the IPO. CIMB was the Principal Adviser, Managing Underwriter for the Malaysia
Public Offering and Sole Coordinator for, and together with Maybank, Joint Bookrunner
of, the MITI Tranche. CIMB and DBS Bank were Singapore Issue Managers for the
Singapore Offering. Freshfields Bruckhaus Deringer acted as legal advisors to
Abraaj Capital for the IPO.
Angela Sormani
Business & Investment Opportunities
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