(Recasts, adds details from official, sources)
* NMC to offer 30 pct of capital - official
* London IPO to price end March or early April - source
* Issue may include 15 pct greenshoe option
* IPO proceeds to be used for expansion
By Stanley Carvalho and David French
ABU DHABI/DUBAI, March 8 UAE healthcare
provider NMC Health, founded by billionaire Indian entrepreneur
B.R. Shetty, plans to raise up to $250 million by offering an
additional 30 percent of its capital in an initial public
offering on the London Stock Exchange.
Abu Dhabi-based NMC, one of the largest private sector
healthcare providers in the United Arab Emirates, operates
general and specialialised hospitals, pharmacies and medical
NMC said it will use proceeds from the IPO and a $150
million credit facility to finance expansion plans.
These include the acquisition of a medical centre in Dubai
by July, the development of a maternity hospital in Abu Dhabi
scheduled to open by the second half of 2012. It also plans to
construct a hospital in Abu Dhabi by 2014.
"This will allow the company to develop existing and new
facilities, as well as expand into new high-growth markets,"
Shetty said, adding London was chosen for the IPO because of its
deep pool of capital and global profile.
Yet, Europe's IPO market has come to a near standstill over
the last year, hard hit by the prolonged euro zone debt crisis.
The last completed IPO on London's main market was that of
Russian oil producer RusPetro in January.
IPOs by companies in the Gulf Arab region came to a halt
after the 2008 financial crisis amid slumping markets and lack
of investor appetite.
NMC expects to price the IPO by the end of March or early
April, a banking source working on the deal told Reuters.
The issue could involve an over-allotment, or greenshoe,
option amounting to 15 percent of NMC's share capital if demand
is strong, the source added, speaking on condition of anonymity.
While the shares offered in the IPO will be new shares,
those in the greenshoe would come from existing share capital.
Two weeks of 'pilot fishing' -- informal meetings with
investors to gauge their interest in a potential offering --
have taken place, with specialist emerging market and healthcare
funds targeted, as well as UK domestic funds.
A further two weeks of roadshows are planned prior to the
pricing of the transaction. The prospectus is due to be
published around March 20, the source added.
Shetty, a trained pharmacist who arrived in the UAE in 1973,
has sold a portion of his stakes in NMC and money exchange
business, UAE Exchange over the past year.
He currently owns 30 percent in NMC, it said in statement.
Since early 2011, NMC has been controlled by investor Saeed
Bin Butti, who holds a 43 percent stake. His investment firm
holds a further 12 percent.
NMC, which also distributes consumer goods, educational
supplies and cosmetic products, had revenue of $443.7 million
and adjusted EBITDA of $70.5 million in 2011.
Deutsche Bank is acting as sole sponsor, global
co-ordinator and bookrunner. Numis Securities Limited and Shuaa
Capital are acting as joint lead managers.
Oil-rich Abu Dhabi is investing billions of dollars in
industry, tourism, healthcare and infrastructure to diversify
its economy away from oil. In recent years, Abu Dhabi has taken
steps to privatise the healthcare sector bringing in
international companies to manage its hospitals.
(Additonal Reporting by A. Ananthalakshmi in Bangalore; Editing
by Dinesh Nair and David Hulmes)