Instituto Hermes Pardini has set the price range for an upcoming IPO, looking to raise as much as BRL864m ($273m) if it sells the shares at the top of the range.
The Brazilian medical diagnostic services provider plans to sell 40.2m shares for BRL17.50 to BRL21.50, said a banker working on the transaction. The bookrunners expect to price the offering on February 9. Pardini picked Bank of America Merrill Lynch, Bradesco, Itau BBA, JPMorgan and Morgan Stanley to lead the IPO in December.
Gavea Investimentos will sell much of the 30% it owns in Hermes Pardini in the IPO but hold on to a smaller stake, the source said. Hermes Pardini will float 30% of its share capital in the offering.
Hermes Pardini recorded net revenues of BRL675m in January to September last year, a 16% increase year-on-year, according to the company’s latest financial statements.
Brazil’s healthcare services stocks enjoyed double-digit gains in 2016. Shares in the top five laboratories or pharmaceutical companies grew about 60% last year on the BM&FBovespa stock exchange in Sao Paulo, a second equity capital markets source said.
The second source also said Alliar’s IPO in October was a boon for investors looking at the medical sector and that it “underscored developments and appetite for certain Brazilian stocks.”
Alliar raised BRL674m in Brazil’s first IPO in 16 months, selling 30.7m shares for BRL20.00 apiece. The bookrunners BAML, Itau BBA and Santander had set the price range at BRL19.00 to BRL25.00.
Alliar has seen its share price fall since the IPO last year, which one investor said could be negative to Hermes Pardini’s plans. After trading at BRL19.30 in November, Alliar’s shares were seen at BRL14.40 on Tuesday.
Latin American equities have gathered pace since Alliar’s offering in October. Peru’s IC Power along with Brazilian car rental companies Unidas and Movida have all set price ranges for February IPOs.
In Chile, Lipigas put an end to almost four-year IPO drought in November last year when raised $151m in its stock market debut.