IVF Chain Virtus Said to Raise $333 Million in Share Sale

Virtus Health Pty, an Australian provider of fertility services, raised A$338 million ($333 million) in Australia’s largest initial public offering in seven months, two people with knowledge of the matter said.

Virtus, part-owned by buyout firm Quadrant Private Equity Pty Ltd., and investors sold shares at A$5.68 each, said the people, asking not to be identified as the information is still private. The total amount raised is more than Virtus had initially expected after Quadrant sold its entire stake in the company, the people said.

With Virtus included, Australia’s IPO market has raised the most money since 2007, with companies generating $578 million from new share sales so far this year, data compiled by Bloomberg show. Virtus’s IPO is the country’s largest since Shopping Centres Australasia Property Group (SCP), spun off from Australia’s largest retailer Woolworths Ltd. (WOW), raised $483 million in October, the data show.

“It is positive for the market, especially in this environment where confidence is a big issue for investors,” said Stan Shamu, a markets strategist at IG Markets Ltd. in Melbourne. “Any successful IPO is going to be looked on kindly by the market.”

Doctors’ Stake

The shares were offered in a range of A$4.92 to A$5.68 apiece to raise between A$264.2 million and A$291.5 million, according to a presentation obtained by Bloomberg News this month. That total assumed Quadrant would retain about a ten percent stake in the company.

The stock will start trading on June 14. Part of the funds will be used to pay debt, the presentation material said.

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, said the people.

The share sale was managed by UBS AG (UBSN) and Morgan Stanley (MS), according to the presentation. Marcus Darville, a Sydney-based director at Quadrant, couldn’t immediately be reached for comment.

To contact the reporter on this story: Brett Foley in Melbourne at bfoley8@bloomberg.net

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

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