Brazil’s private hospitals plan IPOs amid Covid crisis

RIO DE JANEIRO, BRAZIL – In the list of IPOs of the Securities and Exchange Commission of Brazil (CVM) the number of health sector companies that are in line draws attention.

There are at least four companies with hospital networks, and most of them with very similar theses that seek resources to leverage the consolidation trend.

This trend seems to be driven by the financial crisis that many hospitals face because of Covid-19, which drastically reduced the number of elective surgeries among the most profitable hospitals.

Trafalgar Investimentos Igor Lima says that they may ultimately bump heads when many companies have the same goal. It happened with Hapvida and Intermédica, which eventually decided to merge their operations.

In the line to launch shares are the companies Mater Dei Hospital, from Minas Gerais, Care Caledonia Hospital, which operates in the interior of São Paulo, Kora Saúde, with hospitals in Espírito Santo, Mato Grosso and Tocantins, and also Athena Saúde, with hospitals in Espírito Santo and Paraná.

Of the four, Care Caledonia has already defined the papers’ price and expects to raise R$1.1 billion by the end of April. Care Caledonia has the private equity fund Crescera among its partners, businessmen Elie Horn and Julio Bozano.

Source: Veja