Private hospital group Spire Healthcare to float in move valuing it at £1bn

By BEN GRIFFITHS, CITY NEWS EDITOR

Updated: 17:59 EST, 7 July 2014

Britain's second biggest private hospital owner is heading for a £1billion stock market listing that will launch it into the FTSE 250.

Spire Healthcare, which runs 38 private hospitals in the UK, has priced its forthcoming flotation at between 210p and 300p, valuing the business at £955million.

Owned by private equity house Cinven, Spire is planning to use the proceeds of the share sale to pay down its debts and expand its portfolio of hospital sites.

Spire Healthcare: London-based Spire expects to raise proceeds of £315million through the issue of new stock

Up to 45 per cent of the shares will be offered for sale.

London-based Spire expects to raise proceeds of £315million through the issue of new stock. It is set to begin trading on or around July 18 with unconditional dealings due to begin on July 23.

Chief executive Rob Roger said: ‘We are pleased with the level of investor interest we’re seeing at this stage of the IPO process.

Float: Spire's flotation will be the latest in a long line of recent initial public offerings, which have provided a mixed bag of success for investors.

‘Spire represents an opportunity to invest in a business with a strong track record and would be the first UK-based private hospital group to list on the London Stock Exchange.’

The firm was founded in 2007 when healthcare giant Bupa spun off its private hospitals into private equity hands, selling Cinven a package of 25 sites.

Spire has since become regarded as a specialist in knee and hip replacement operations.

The company employs around 7,000 staff and uses some 3,500 freelance physicians and surgeons.

Last year it made pre-tax profits of £154million on sales of £765million.

Spire’s flotation will be the latest in a long line of recent initial public offerings, which have provided a mixed bag of success for investors.

Several floats are trading below their offer price, including AO World, Pets at Home, Saga and Just Eat.