HIG-backed hospital chain Kora explores IPO in Brazil - sources

By Carolina Mandl

SAO PAULO, Dec 2 (Reuters) - Brazilian hospital chain Kora Saude, backed by U.S. private equity firm HIG Capital, is considering filing for an initial public offering next year, three sources familiar with the matter said.

HIG and Kora have been in talks with banks over the past few weeks about managing an IPO, although no final decision has yet been taken about a listing. Kora and HIG did not immediately respond to a Reuters request for comment on the matter.

The move by Kora comes as Brazil's biggest hospital chain Rede D'Or, backed by private equity firm Carlyle and Singaporean state investor GIC, prepares to price its IPO next week, seeking a valuation of roughly 128 billion reais ($24.32 billion). D'Or has 51 hospitals and 8,505 beds.

That high valuation has prompted Kora and other healthcare companies to explore an IPO. Shares in Brazilian healthcare companies, such as Hapvida and Notre Dame Intermedica , have been outperforming the benchmark Bovespa stock index.

U.S.-based HIG, which manages $42 billion in assets, bought a stake in Kora in 2018, when it was known as Meridional, then expanded it through various acquisitions.

Kora manages 10 hospitals, with 900 beds, in seven cities, mainly in the southeastern state of Espirito Santo, according to its website. ($1 = 5.2625 reais) (Reporting by Carolina Mandl; editing by Emelia Sithole-Matarise)