Carlyle-Backed Rede D’Or IPO Said to Raise $2.2 Billion

Rede D’Or Sao Luiz SA’s initial public offering raised 11.4 billion reais ($2.23 billion), according to people familiar with the matter, making it one of the biggest in Brazil’s history.

Carlyle-Backed Rede D’Or IPO Said to Raise $2.2 Billion

The hospital operator backed by private equity firm Carlyle Group Inc. sold 145,677,487 voting shares at 57.92 reais apiece, according to Brazilian regulator CVM. The proposed price range was 48.91-64.35 reais.

Strong demand for the offer, which for years had been anticipated by Brazil investors, allowed for the full placement of the so-called green shoe and hot issue, the people said, asking not to be named because the information is not public yet. That added about 3 billion reais to the initial amount sold, taking the total to 11.4 billion reais, the people said. That places Rede D’Or as the third-biggest IPO in Brazil, behind Banco Santander Brasil SA’s 2009 deal and insurer BB Seguridade Participacoes SA in 2013.

Rede D’Or didn’t reply to a request seeking comment.

The prospectus filed with the Brazilian regulator had said Carlyle, Singapore sovereign-wealth fund GIC and the Moll family, which owns a controlling stake, could also sell part of their holdings if demand was too high.

Bank of America Corp. is leading the offer and other banks running the deal are Banco BTG Pactual SA, Banco Bradesco BBI SA, JPMorgan Chase & Co., XP Inc., BB Investimentos, Citigroup Inc., Credit Suisse Group AG, Banco Safra SA and Santander Brasil.

Rede D’Or runs a network of more than 50 hospitals and labs in Brazil, created by billionaire Jorge Moll Filho.

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