Temasek Holdings emerges as major backer in Turkey’s MLP Health Services IPO

Doctor in a clinic.

The initial public offer (IPO) of MLP Saglik Hizmetleri (MLP Health Services Inc.), Turkey’s largest private healthcare service provider, on the Borsa Istanbul has seen Singapore state investor Temasek Holdings emerge as one of its major backers, according to Turkish media reports.

Its IPO will see it raise primary proceeds estimated at 500 million lira ($133 million). The global coordinators are JP Morgan, Goldman Sachs and HSBC. Bank of America Merrill Lynch is a bookrunner and the domestic coordinator and bookrunner is Ak Yatırım Menkul Değerler.

Founded in 1993 as a single hospital, MLP posted earnings before interest, tax, depreciation and amortization (EBITDA) in 2016 of 312 million lira on revenue of 2.2 billion lira across 29 hospitals and 5,330 beds in 17 cities. The company operates hospitals that provide diagnostic and therapeutic services in Turkey and internationally.

Headquartered in Istanbul, it has hospitals in Ankara, Antalya, Batman, Bursa, Elazig, Gebze, Izmir, and other cities throughout Turkey. MLP Health Services is expected to have a free float of approximately 45 per cent, with proceeds from the primary offering being used to repay foreign-currency denominated debt.

Temasek owns an equity interest of 15.71 per cent in the firm. Other investors who own more than 5 per cent of the firm include British Genesis Investment (11.62%), as well as British Charlemagne Capital, UK Carrhae Capital, British Alliance Berstein, Goldman Sachs, and United Arab Emirates East Capital. 

The last healthcare investment that Temasek made was in a Brazil’s Clinic SIM. Other healthcare investments it has made in the last 12 months include WuXi NextCODE, a fully integrated contract genomics organisation with a presence in China, the US and Iceland; and a majority stake in US‐based Global Healthcare Exchange, which provides an electronic trading exchange and cloud‐based supply chain software for healthcare providers and suppliers.

The public offer saw shares priced at 19 lira, with 83.6 per cent of shares purchased by foreign institutional investors. The remaining shares were subscribed to by a mix of local retail and institutional investors.

In a statement, MLP Care Chairman and Chief Executive Officer Muharrem Usta said, “We are pleased to see the total size of the demand from domestic and foreign countries, with interest from large, well-known investment funds in Singapore, USA, UK, United Arab Emirates and Continental Europe. This is an indication of the interest and confidence in our company as well as Turkey’s economy.”

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