Private hospital group Spire set for London IPO

Wednesday 25 June 2014 08.12
Spire set to list its shares on the London Stock Exchange
Spire set to list its shares on the London Stock Exchange

UK private hospital group Spire is to list its shares on the London Stock Exchange, the company said today. 

Spire said it plans to raise gross proceeds of £315m as it seeks a larger slice of the healthcare market. 

The company, owned by private equity firm Cinven will be valued at around £1 billion, excluding debt, in the sale of new and existing shares, two sources familiar with the matter said. 

Spire, which is the UK's second-largest chain of private hospitals, generated earnings before interest, tax, depreciation and amortisation of £154.1m in 2013 after rental costs. 

Cinven created Spire through its 2007 purchase of Bupa's hospitals business. The chain refinanced its loan facilities in 2013 with a sale and leaseback of 12 of its 38 hospitals, raising around £700m to reduce debt. 

The firm said it is planning a free float of at least 25% of issued share capital.