IHH Healthcare Said to Reserve 62% of IPO for Cornerstone Buyers

IHH Healthcare Bhd., Asia’s biggest hospital operator, reserved more than 60 percent of its 6.4 billion-ringgit ($2 billion) initial public offering for 22 so- called cornerstone investors including JF Asset Management Ltd., two people with knowledge of the matter said.

The Malaysian company set aside 1.38 billion of 2.23 billion shares on offer for such buyers, said the people, who declined to be named as the information is confidential. Marketing to other institutions will begin in the first week of July, one person said.

IHH Healthcare is selling a larger portion of its IPO to cornerstone investors than Felda Global Ventures Holdings Bhd., which raised about $3.3 billion in Kuala Lumpur this week. Felda sold about a third of the stock to such buyers, which typically agree to hold the shares for a set period of time in exchange for guaranteed allocation.

Fullerton Fund Management Co., Newton Investment Management and Och-Ziff Capital Management Group are among the cornerstone investors in IHH Healthcare’s IPO, the people said. Billionaire T. Ananda Krishnan’s Usaha Tegas Sdn. and CIMB-Principal Asset Management Bhd. are also investing, according to the people.

The Edge Financial Daily published the cornerstones’ identities today, citing an unidentified person.

IHH Healthcare, controlled by Malaysia’s state investment company Khazanah Nasional Bhd., has been on an acquisition spree. It agreed to buy 75 percent of the owner of Turkey’s largest hospital group, Acibadem Saglik Hizmetleri & Ticaret AS, in December.

The Malaysian company earlier paid S$3.5 billion ($2.7 billion) for the 76.1 percent of Singapore’s Parkway Holdings Ltd. it didn’t already own, beating New Delhi-based Fortis Healthcare Ltd.

To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

To contact the editors responsible for this story: Philip Lagerkranser in Hong Kong at lagerkranser@bloomberg.net; Jason Gale in Melbourne at j.gale@bloomberg.net

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