KUALA LUMPUR: IHH Healthcare Bhd today announced that its indirect India-based subsidiary Agilus Diagnostics Ltd will abort plans for an initial public offering (IPO) on the Securities and Exchange Board of India (SEBI) due to commercial considerations.
Agilus Diagnostics is a material subsidiary of Fortis Healthcare Ltd, an indirect 31.17 per cent-owned subsidiary of IHH Healthcare.
The proposed IPO was to be by way of offer for sale of selling shareholders, private equity investors International Finance Corporation, NYLIM Jacob Ballas India Fund III LLC and Resurgence PE Investments Limited.
In a filing with Bursa Malaysia Securities Bhd today, IHH Healthcare said the decision to withdraw the draft Red Herrring prospectus Agilus Diagnostics filed with SEBI in Sep 29, 2023, was made in consultation with and mutual agreement of International Finance Corporation, NYLIM and Resurgence PE.
The board of directors of Fortis and Agilus confirmed and approved of the withdrawal of the draft Red Herring prospectus at their respective meetings held on Feb 13, 2024.
"Agilus would be making the necessary application to SEBI for withdrawal of the said draft Red Herring prospectus immediately and may re-file with SEBI again for a proposed IPO in future, subject to applicable laws," it said in the filing made to the bourse.
As of March 31, 2023, Agilus Diagnostics had a network of 413 diagnostic laboratories in India, out of which 43 laboratories were accredited by National Accreditation Board for Testing and Calibration Laboratories.
Fortis is one of the largest healthcare providers in India with 27 hospitals, about 4,100 operational beds and over 400 diagnostics centres. It employs about 22,000 people, including Agilus Diagnostics.
IHH Healthcare's share price was down 1.61 per cent to RM6.11 a share at midday break, with some 2.16 million shares changing hands.