Aster Dm Healthcare Ipo

Aster dm healthcare ipo

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Issac John / 7 March 2014
Healthcare conglomerate Aster DM Healthcare, which is geared for an initial public offering this year of around $200 to $w300 million, will be investing $600 million for expansion of its business in the GCC and India over the next five years in an ambitious drive to boost revenues by several-fold.

Dr Azad Moopen, Chairman and Managing Director of Aster DM Healthcare, said his group has set into motion an expansion strategy to achieve a two-fold growth in revenues to $1.2 billion by 2017.

As part of the expansion roadmap, the Dubai-headquartered healthcare group announced in January the launch of three new hospitals in the UAE and one in Qatar.

The soft launch of Phase 1 of Aster Medcity at Kochi in Kerala, which is billed as South Asia’s largest quaternary care, was held on February 24 and the 570-bed facility is on track to be operational by May this year.

For the IPO and listing, the group is in discussion with some of the leading investment bankers like JP Morgan, Goldman Sachs, Deutsche Bank and Bank of America-Merrill Lynch, Dr Moopen said.
Banks have evaluated the company’s books and estimated the company’s size to be in the range of $2.0 billion to $2.5 billion, he said.

Aster DM Healthcare will be the third healthcare provider in the UAE , after NMC Group and Al Noor Hospitals Group, going for IPO to raise funds for expansion.

In 2012, NMC Health raised $187 million when it went public on the London Stock Exchange.

In the following year, Al Noor Hospitals sold shares worth $342 million on its debut on London.

Dr Moopen hinted that Aster DM Healthcare would probably take cue and opt for listing on the London bourse.

However, Indian market is also of equal interest.

In order of preference, he said the IPO, open to retail and corporate investors, would be listed either on London, India or Dubai bourses.

The Aster Group, which currently owns and operates a network of more than 175 units across the GCC and India, will also be doubling its workforce in four years as its presses ahead with expansion in the Mena region and in India.

Aster dm healthcare ipo

Aster DM Healthcare owns a range of brands including Aster, Medcare, Access and MIMS

Of the $600 million investment for expansion, half will be deployed in the Gulf, and the other half in India.

Among the three new UAE hospitals, the first project is the Aster Hospital in Mankhool, Bur Dubai. The facility, with 85 beds, is in the final phase of the preparation for commissioning in the third quarter of the year.

Aster dm healthcare ipo

The other two projects the 75-bed Medcare Mother & Children

Specialised Hospital on Shaikh Zayed Road, Dubai and a 115-bed Medcare Hospital in Sharjah are in the project stage and scheduled to open next year.

Group is also exploring the possibility of a hospital in Abu Dhabi soon.

Aster dm healthcare ipo

A hospital, under the Aster brand, is also being developed in Qatar and scheduled for launch in 2015.

Alisha Moopen, Director Strategies of the Group, said that the conglomerate is now operational across boundaries, touching the lives of more than 20,000 patients every day and reaching out to more than seven million patients annually. The Group shall be starting a chain of Pharmacies and Clinics in Kuwait, Jordan, Bahrain and Philippines this year .

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The Group is also planning to roll out another 40 medical centres and 100 pharmacies across Middle East by the end of 2015 to achieve its target of 300 units.

The new projects in the Middle East, will offer advanced care through a synergy of cutting edge medical technology and highly qualified medical professionals of multinational and multilingual background, said Alisha Moopen

The $300 million Aster Medcity in Kochi, Kerala, is a conglomeration of nine super specialty hospitals in one campus with a bed capacity of 575 in Phase I.

As Kochi is well connected to the Middle East and several countries of the world, the 1,100-bed capacity medical city will be within easy reach of local and international communities, especially the people from the Middle East, Africa and European Union for advanced and cost effective care, Dr Moopen explained.

“Apart from providing advanced tertiary and quaternary care to the local population at affordable cost, Aster Medcity will also act as a premium medical tourism destination in South Asia attracting talent and patients from MENA and SAARC region.

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Facilities like Robotic Surgery using daVinci shall be available first time in the region along with many other cutting edge technologies like the True Beam Radiation,” said Alisha Moopen.

MIMS Hospitals, which has 750 operational beds now at Calicut and Kottakkal, is planning to add another 750 beds in next 2-3 years.

There are two new hospitals under MIMS brand coming up at Kannur and Perinthalmanna. Aster DM Healthcare holds majority stake in MIMS. There are more than 20 PG Training programs in MIMS Hospital for doctors recognized by National Board.

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MIMS also has an Academy with MSc, BSc and Diploma in Nursing and Para Medical courses.

The Group also runs a Medical College with a 500-bed hospital under the brand DM WIMS (Wayanad Institute off Medical Sciences) at Meppadi, with 150 students intake per year.

The second batch of medical students is expected to join by August 2014.

There are 22 seats reserved for NRIs.

Aster DM Healthcare also has two hospitals in Pune and Kolhapur in Maharashtra and is planning to set up hospitals in Mumbai, Hyderabad and Bangalore soon.

Aster dm healthcare ipo

The focus is to become the largest in South and Western India, said Dr Moopen. “Our long term plan is to position the brand as a global integrated healthcare provider with a strong presence in Asia.”

Dr Moopen said the expansion is part of his group’s strategy to lead the change in the healthcare sector by being the largest healthcare provider in the region and beyond.

“Aster DM Healthcare is giving priority to raise the standards of medical practice by establishing a large chain of hospitals, clinics and pharmacies across the region with the motto of Quality Care at Affordable Cost.

Aster dm healthcare ipo

We will have about 5,000 beds under operation worldwide under different brands and shall strive to be a top healthcare provider in the region,” said Dr Moopen.

The group currently employs about 10,000, including more than 1,000 doctors and 3,000 nurses, across its units in India and the Middle East. The Indian registered Aster DM Healthcare has already reached a position just below Apollo in revenues and profits.

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