Bain-Backed Intermedica’s Share Sale Raises $1.2 Billion

(Bloomberg) -- Notre Dame Intermedica Participacoes SA and Bain Capital raised a combined $1.2 billion in a sale of the company’s shares, giving its largest holder another windfall from its Brazilian investment in a sign of rising investor demand in a growing niche of the health-care market.

Intermedica and a Bain-owned vehicle in Brazil sold 5 billion reais in shares in a public sale, with stock priced at 57 reais each, the company said in a regulatory filing Thursday. The company sold 65 million shares for proceeds of 3.71 billion reais, while Bain’s fund offered 22.8 million shares, netting 1.3 billion reais.

Bain’s stake was sold as part of an additional allotment triggered by the high demand for the offering. The fund held a 27% stake before the sale.

Intermedica is part of a new group of health-care providers gaining ground in Brazil which not only sell insurance but own hospital networks as well. Bain Capital, an early backer of the firm that bought it in 2014, has been reducing its holdings since Intermedica went public in 2018 and sold another stake on Wednesday.

The offering was “an expected and welcome” move, BTG Pactual’s analyst Samuel Alves wrote in a note to clients. Shares of Intermedica snapped a three-day slide in Sao Paulo, gaining as much as 2.5% at 10:30 a.m. local time.

The shares have surged more than 250% since the firm started trading last year, far outpacing gains in the benchmark Ibovespa gauge in that time.

The new shares will start trading on Dec. 13. Banks running the deal included Banco Itau BBA, JP Morgan, Banco Bradesco BBI, Citigroup Global Markets, Morgan Stanley, Banco Santander Brasil, Credit Suisse and UBS.

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