Luye Medical is launching investor meetings this week for a potential initial public offering of private hospitals within its Healthe Care business.
On offer is understood to be all of the Healthe Care hospitals, excluding its acute care hospitals, which are more aligned to the rest of Luye’s business in Asia.
The new entity on offer will be named Aurora Healthcare.
Investor meetings are being held on Thursday and Tuesday, with adviser UBS on board.
The plan by China’s Luye Medical to potentially sell its private hospital services was first flagged by DataRoom on November 24.
Aurora Healthcare is being pitched as a major provider of specialty healthcare services in Australia and Singapore, focused on the high growth specialties of mental health, rehabilitation, oncology and cardiology.
Healthe Care is Australia’s third largest private hospital operator.
The offering includes 25 sites, including 16 in Australia, with seven operating in the area of mental health, three in rehabilitation and six in the area of integrated mental health and rehabilitation.
It includes nine sites in Singapore, with seven providing oncology services and two cardiology.
The company generated $380m of revenue in 2019, 75 per cent of which was in Australia.
The business is being promoted as one that focuses on some of the largest and most attractive healthcare specialties, with a highly scalable operating model that drives attractive earnings margins.
Limited public sector alternatives are expected to drive sales growth.
The company has recorded average annual revenue growth of at least 25 per cent between 2015 and 2019.
Leading the business is Charles Wang, along with Healthe Care co-founder Steve Atkins and Conal Henderson, who has experience in investment banking and accounting.
Luye purchased Healthe Care from Archer Capital in 2015 for $938m.
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