Cruz Blanca Readies IPO Launch

Chilean health services provider Cruz Blanca plans to begin marketing its IPO in LatAm, the US and UK starting next week. The company plans to price the transaction the week of June 20, according to a note from Celfin, one of the bookrunners on the deal. The sale of 122m primary and up to 100m secondary shares, expected to raise about $200m equivalent, has just been approved by Chilean regulators. The offer represents up to 35% of the company, according to the prospectus. The health insurance provider and operator of medical centers and clinics plans to use 65% of the funds raised for its investment plan. The plan consists of opening new locations for its Integramedica walk-in clinics, and opening and renovating locations under its three brands of medical centers, as well as unspecified growth through acquisitions and organic means. The other 35% would be used to repay debt. Bice, Celfin and IMTrust are managing the sale. The issuer, owned by Grupo Said and Linzor Capital, was founded in 1999, though the Cruz Blanca brand goes back to 2008 and of the company’s acquisition of health insurer Isapre ING. The health insurance operations represent 74% of Cruz Blanca’s business, according to the prospectus. Its total 2010 Ebitda was $31.2m equivalent. Cruz Blanca claims 20% of the market in Chile, covering 530,000 people, according to its website.