Diaverum eyes IPO in November

The Swedish dialysis firm ranks third as a global dialysis clinic operator

European buyout firm Bridgepoint is preparing to launch a stock market listing of its dialysis clinic operator Diaverum in Stockholm in November, assuming no major decline in broader stock markets, people close to the matter said.

The company could fetch a valuation of more than £1.81 billion in the long-anticipated deal, they added.

Bridgepoint is working with JP Morgan, Carnegie and SEB on the initial public offering, which it hopes to wrap up this year but would postpone if the U.S. elections spark a stock market rout depressing valuations, they added.

Based in Malmo in southern Sweden, Diaverum ranks as the global no.3 dialysis clinic operator after Fresenius Medical Care and Davita.

Last year, Diaverum signed a five-year dialysis contract with the Ministry of Health in Saudi Arabia, which the company hopes will boost its business and its valuation.

While FMC and Davita trade at 9 and 8.5 times their core earnings, respectively, Diaverum is hoping for a valuation of at least 12 times.

Smaller peers such as Sweden's Medicover, Italy's Garofalo or Saudi Arabia's Mouwasat trade at between 10.5 and 22 times.

Bridgepoint has held the company for more than a decade, having bought it in 2007 from EQT and ramping up its global presence through a string of acquisitions giving it a strong presence in the Middle East and China.

Diaverum, which serves more than 39,000 patients in 22 countries, has a headcount of 11,000 people.

While dialysis providers have seen stable revenues from patients needing regular treatment, they have had to offer costly protective measures to their patients, who are among the most vulnerable to COVID-19 because they are typically elderly and often suffer from cardiovascular conditions.