Saratoga-backed Indonesian hospital chain Primaya eyes IPO


Primaya Hospital, a unit of Indonesia-listed investment company PT Saratoga Sedaya Investama, is targeting an initial public offering in the fourth quarter of 2022, according to a top Saratoga executive. Saratoga's investment director, Devin Wirawan, said health care is one of the company's focus areas. "Saratoga invested in Primaya four years ago when it had only four hospitals. Now it has grown to 15 hospitals all over Indonesia," Wirawan said in a recent webinar. Primaya Hospital, previously known as Awal Bros Hospital, owns and operates 15 hospitals with over 1,400 beds in Sumatra, Java, Sulawesi and Kalimantan.

"As an investment firm, we take them to a certain size and then when it's appropriate, we will list the company," he said. "We consider this strategy not only for Primaya but also for others. But I can safely say that yes, Primaya is already big enough [and] sizable enough to tap the capital market."

Primaya's plans come at a time when Indonesia's IPO market, which recovered in 2021 from the pandemic-induced lows of the previous year, is staring at another lackluster year in terms of fundraising. Unfavorable market conditions have forced many IPO hopefuls, especially from technology startups, to defer their public listings until next year.

DealStreetAsia has approached Saratoga and Primaya for further comment. DealStreetAsia reported last March that Saratoga was in talks to sell its stake in Primaya Hospital ahead of its IPO. Singapore state fund GIC was said to be one of the front-runners to become Primaya Hospital's newest investor in a transaction worth at least $100 million, the report cited. Wirawan had declined to comment on GIC's possible investment. Primaya Hospital was said to be looking to raise over 1 trillion rupiah ($66 million) via the listing route, according to an earlier DealStreetAsia report.

Backing Primaya Hospital was part of Saratoga's plan to focus on the consumer sector to cater to rising demand for health care services in Southeast Asia's largest market. The investment company is focused on early-stage, growth-stage and special situation opportunities as part of its strategy.

Indonesia's stock market has seen several listings by hospital chains in the last few years. In January 2021, Jakarta-headquartered Bundamedik launched its IPO on the Indonesia Stock Exchange, raising around $15 million. The group's shares rose around 140% to 1,005 rupiah within 10 days of its debut.

The previous year, Metro Healthcare Indonesia launched its IPO to raise 1.1 trillion rupiah. Meanwhile, in a major deal, Indonesian conglomerate Astra International invested in public hospital chain PT Medikaloka Hermina to acquire a 7.45% stake.

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