Wires

UPDATE 2-Russia's MD Medical nets $311 mln from London float

Share

* GDR priced at $12.00, trading at $12.25

* Market capitalisation around $900 million

* Free float 35 percent

(Includes other investors in IPO, updates shares)

By Olga Popova

MOSCOW, Oct 12 (Reuters) - Russian private healthcarecompany MD Medical Group's London share listing made asmooth start on Friday, with the global depositary receipts(GDRs) trading at a 2 percent premium to their issue price of$12.

The health clincs and hospital operator said it expected thesale of new and existing shares to raise $311 million, assumingan over-allotment option was taken up, and put its marketcapitalisation at around $900 million, with a free float ofabout 35 percent.

Russian firms have been jostling to take advantage of therecent rally in stock markets, with the MDMG sale coming justweeks after the Russian state raised 159 billion roubles ($5.1billion) from the sale in London and Moscow of a 7.6 percentstake in Sberbank , the country's biggest bank.

MegaFon , the country's second biggest mobileoperator, is expected to raise up to $2 billion in a London andMoscow offering before the end of the year, while lenderPromsvyazbank has plans to raise around $400 millionin a London-Moscow offering.

MDMG's sale proceeds included $150 million from new GDRswhich the company says will fund its expansion in Russia, withexisting shares sold by MD Medical Holding Ltd, which is ownedby the group's founder and chairman Mark Kurtser.

MDMG's current facilities include a hospital and eightoutpatient clinics in Moscow, Perm, St. Petersburg and Ufa, aswell as a number of franchised out-patient clinics.

Russia's state-backed private equity fund RDIF, funds ofasset manager BlackRock , private equity firm SigulerGuff's Russia Partners, and others spent $50 million in theshare offer, according to a statement issued by the RDIF.

Deutsche Bank and JPMorgan were jointglobal coordinators and joint bookrunners on the MDMG deal.($1 = 31.0190 roubles)

(Additional reporting by Megan Davies; Writing by KatyaGolubkova and Megan Davies; Editing by Dan Lalor and GregMahlich)

((ekaterina.golubkova@thomsonreuters.com)(+7 495 775 1242))

Keywords: MDMEDICALGROUP IPO/