LatAm healthcare firm Auna prepares for NYSE listing; to raise $420 million in IPO

IPO activity gathered momentum this year in a sign that the market is recovering from the weakness experienced in 2023. The resilience of the US economy and rising hopes of interest rate cuts have set the backdrop for an IPO rebound.

The latest among the IPO aspirants is Auna S.A., a Peru-based healthcare service provider that is preparing to issue around 30 million shares in the price range of $13.00 per share to $15.00 per share. At the mid-point of the range, the offering will generate around $420 million.

The Offering

Post IPO, the company’s shares will trade on the New York Stock Exchange under the symbol AUNA. The management intends to use proceeds from the offering to pay off debts and for other corporate purposes. The underwriting group that manages the offering is led by Morgan Stanley, J.P. Morgan, BTG Pactual, and Santander. The underwriters are expected to get a 30-day option to purchase up to an additional 4.5 million class A shares at the offer price, in connection with the initial public offering.

Auna provides healthcare plans and operates healthcare facilities in Peru, Mexico, and Colombia, with 16 branches in nine cities and around 14,000 employees. Founded in Peru in 1989 as Oncosalud, the company evolved into the current form by expanding its geographic footprint through a series of acquisitions.

Key Numbers

Auna has a market capitalization of around $1 billion. In fiscal 2023, total revenues from contracts with customers was $1.05 billion, which is up 58% from the previous year. The company incurred a net loss of $57.9 million or $1.56 per share in 2023. EBITDA and adjusted EBITDA increased sharply to $216.6 million and $222.6 million, respectively, reflecting the consolidation of acquisitions, continued growth in the company’s healthcare services in the Peru segment, and an increase in average revenue per patient.

It is estimated that healthcare spending in Spanish-speaking Latin America will grow from $314 billion in 2023 to around $469 billion by 2028, unfolding significant growth opportunities for healthcare players. Currently, the majority of people in the region have limited access to healthcare because the facilities at hospitals are far below the WHO’s minimum recommended standards.