JAKARTA (TheInsiderStories) – The owner of Hermina Hospital, PT Medikaloka Hermina, has revealed a plan to raise up to US$200 million via an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX) in 2018.
Hermina President Director Dr Hasmoro explained in public expose on Thursday (7/9) that fresh funds from the offering will be used to grow Hermina’s network to 40 hospitals by 2020.
Founded as a mother and child care hospital, Hermina is now a multi-specialty, primary and secondary care hospital group. It claims to retain its core expertise in mother and child care, with a panel of top obstetrics and gynecology specialists.
According to him, the initial investment requirement of hospital construction with 50 beds is around Rp80-100 billion. But Hermina’s total investment needs are even greater, because existing hospitals can still be developed.
“There is a shortfall of healthcare infrastructure in Indonesia, and this limits the ability of the community, in particular in less-developed areas, to access quality hospital services,” he said.
Hermina has just announced the acquisition of Rp600 billion in fresh funds of from Malaysia-based Creador private equity firm. Creador thus becomes a minority shareholder in Hermina.
Senior Managing Director of Creador Cyril Noerhadi said Hermina’s investment of US$45 million is part of Creador’s total investment of US$ 100 million in the pharmaceutical and health sectors. Overall, Creador’s total investment in Indonesia has reached US $ 200 million.
“Our ownership in Hermina is a minority stake. The majority owner is 13 parties who are all founders, and who are doctors,” said Cyril.
Creador believes that the trend will accelerate, as Indonesia rolls out the government-sponsored Universal Health Coverage plans that will provide healthcare access and coverage to the entire Indonesian population by 2019.
Based on Ministry of Health data, the fulfillment or absence of community needs for health services in a region can be appraised from the ratio of hospital beds to 1000 residents: in 2015 this amounted to 1.21 per 1000 Indonesian citizens. This ratio increased compared to 2014, when it was 1.07 per 1000 population.
The overall annual healthcare expenditure of US$ 28 billion has increased at 10 percent CAGR for the last 5 years, and private players have become a larger part of the overall portfolio.
Currently, there are four hospitals that have listed their stocks on the IDX: PT Siloam Hospitals International Tbk, PT Sarana Meditama Metropolitan Tbk., PT Mitra Keluarga Karya Sehat Tbk, and PT Sejahteraraya Anugrahjaya Tbk. (CS)
Writing by Elisa Valenta, Email: email@example.com
US$1 = Rp13.300