Brazil hospital chain Rede D'Or seeks $18bln valuation in IPO -source

Most of the proceeds will be raised to fund Rede D'Or expansion

  
Part of the daily operations at American Hospital Dubai. Image courtesy Dubai Media Office Twitter handle. Image for illustrative purposes.

Part of the daily operations at American Hospital Dubai. Image courtesy Dubai Media Office Twitter handle. Image for illustrative purposes.

SAO PAULO- Brazilian hospital group Rede D'Or has hired banks for a proposed initial public offering, seeking a valuation of at least 100 billion reais ($18 billion), a source familiar with the matter said.

The company and its shareholders, which include founder family Moll, private equity firm Carlyle and Singapore state investor GIC, plan to raise 15 billion reais, the source added.

Most of the proceeds will be raised to fund Rede D'Or expansion, including some acquisitions, this person said.

Rede D'Or's press office declined to comment on "market speculation," according to a statement. In a securities filing, the company said it is always evaluating opportunities to raise capital in the fixed and variable income markets.

Rede D'or has hired Bank of America, JP Morgan, BTG Pactual, Bradesco BBI and XP Investimentos to manage the offering, expected for the fourth quarter.

Newspapers Valor Economico and O Globo reported earlier on Wednesday on Rede D'Or plans for an IPO.

($1 = 5.5416 reais)

(Reporting by Carolina Mandl, additional reporting by Ana Mano; editing by Jason Neely and Steve Orlofsky) ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.thomsonreuters.com@reuters.net))

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