European Medical Center has become a “unicorn”, having received an IPO valuation of $ 1.125 billion, even without published reports. The memorandum was shown only to interested investors and was published a few hours after trading. The IPO did not arouse much investor interest. Still, it almost made one of the company’s long-term investors a billionaire, and the other two allowed them to go out of business at a not very bad estimate.
The European Medical Center” (EMC) is placed on the stock exchange and costs (by multiples) cheaper than its closest analog – “Mother and Child”. Investors’ money did not go to the company but to its shareholders, two of whom were withdrawn entirely from the capital. EMC had to promise a dividend of 100% of net income and an increase in this profit by 45% compared to last year. The increase in net profit in the first quarter was helped by reducing expenses – that is, salaries of doctors.
What Does It Mean?
On Thursday, July 15, trading in global depositary receipts of the European Medical Center company began on the Moscow Exchange. The company could sell securities at the lower end of the price range – at $ 12.5 per share. Despite this, not the most pleasant fact, EMC has become a new “unicorn” – according to the results of the IPO; its valuation was $ 1.125 billion, the company raised $ 500 million.
After trading, securities on the Moscow Exchange, where trading takes place in rubles, decreased by 2% – from 940 to 925 rubles apiece. The shareholders of the company who sold their shares won from this placement – INS Holdings Limited by Igor Shilov (before the IPO owned 71.2% of the company), Hilot Holdings Limited by Yegor Kulkov (20.8%), as well as Greenlees International Holdings by Roman Abramovich F 12 ( 6.9%).
Shilov, who invested in the company more than ten years ago, gained $ 180 million, Interfax calculated, his share dropped to 55.11%. Abramovich and Kulkov sold everything or almost everything and raised $ 80 million to $ 230 million. Igor Shilov is now nearly a billionaire.
The European Medical Center provides medical services to premium clients; its prices are fixed in euros. The average bill in 2020, excluding compulsory medical insurance, was € 383 in the first quarter of 2021 – € 385. In 2020, 504,000 patients visited the clinic, each of them bought three services on average.
A significant share of the company’s revenue – 18% – comes from oncology treatment. In total, in 2020, the European Medical Center earned € 241 million, which is 10% more than a year earlier. This is adjusted revenue, excluding revenue and construction costs. But this is revenue excluding construction – revenue from it and charges. However, the proceeds from construction are small – for 2020 € 17.7 million. Unadjusted income, therefore, is equal to € 259 million.