Goldman-Owned Oncoclinicas Raises $689 Million in IPO

(Bloomberg) -- An initial public equity offering by a Brazilian medical-care provider owned by Goldman Sachs Group Inc. raised 3.6 billion reais ($689 million), according to people familiar with the matter.

Oncoclinicas do Brasil Servicos Medicos SA, which specializes in the diagnosis and treatment of cancer, priced shares at 19.75 reais apiece, below the proposed range of 22.21 reais to 30.29 reais, the people said, asking not to be identified because the decision isn’t public yet. The company raised 1.78 billion reais by selling 90,049,527 shares, while Goldman Sachs raised 1.82 billion reais by selling 92,300,765 shares, the people said.

Oncoclinicas declined to comment.

Goldman Sachs invested about 1.75 billion reais over several years to acquire a 93.52% stake in Oncoclinicas, according to data compiled by Bloomberg. It started buying shares in 2015, and kept increasing its stake until 2019, using two investment funds, Josephina Fundo de Investimento em Participacoes Multiestrategia and Josephina II Fundo de Investimento em Participacoes Multiestrategia. Both funds sold shares in the IPO.

Goldman Sachs is the leading coordinator for the deal, while Banco Itau BBA SA is the global coordinator. Other underwriters are Citigroup Inc., JPMorgan Chase & Co., Banco Santander SA and UBS BB, according to the prospectus.

Founded in 2010 in Belo Horizonte, Minas Gerais, Oncoclinicas now has 69 subsidiaries in several states, acting through specialized clinics and laboratories in the diagnosis and treatment of cancer in 20 cities in Brazil.

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