Virtus Health Plans to Raise About $300 Million in IPO

Virtus Health Pty Ltd., Australia’s biggest provider of fertility services, plans to sell shares in an initial public offering that may raise A$291.5 million ($298 million), according to a presentation document.

Virtus, part-owned by buyout firm Quadrant Private Equity Pty Ltd., and its investors will sell shares at A$4.92 to A$5.68 each, according to the material obtained by Bloomberg. The stock will start trading on June 14 and part of the funds will be used to pay debt, according to the document. A spokeswoman for Sydney-based Virtus declined to comment on the deal’s details.

After the sale, Virtus will have a market capitalization of as much as A$449.4 million, according to the presentation, making it the largest company to start trading on the Australian stock exchange since October. The company’s 33 fertility clinics in Victoria, Queensland and New South Wales provided 35 percent of the IVF treatment cycles performed last year in Australia, according to the presentation.

The stake held by the company’s fertility doctors will be cut in half to about 23 percent after the share sale, while Sydney-based Quadrant will reduce its 46.5 percent holding to about 10 percent and have one seat on the Virtus board, according to the presentation.

The share sale is being conducted by UBS AG (UBSN) and Morgan Stanley, according to the document.

To contact the reporters on this story: Brett Foley in Melbourne at bfoley8@bloomberg.net; Jason Gale in Melbourne at j.gale@bloomberg.net

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

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