Rede D’Or’s R$11.5 Billion Initial Public Offering


Pinheiro Guimarães and Skadden, Arps, Slate, Meagher & Floom acted as counsel to Rede D’or, while Lefosse Advogados, Shearman & Sterling advised the underwriters. Mattos Filho and Demarest Advogados advised GIC and Carlyle as selling shareholders in the transaction.

Rede D’Or, Brazil’s largest hospital chain, was valued at $112.5 billion reais (US$30 billion) in an initial public offering that reportedly placed the company among Brazil’s 10 largest companies by market capitalization. This transaction is the largest IPO in Brazil since 2013 and second largest IPO ever in the Brazilian market.

Both the company and its shareholders, which include Carlyle Group and Singapore state investor GIC and its founder’s family. The hospital chain plans to use the proceeds – roughly 8.4 billion reais – to build hospitals and acquire businesses, such as health insurance brokers and hospitals.

Rede D’or, with 51 hospitals in Brazil, was founded in 1977 by Jorge Moll Filho as a laboratory. The company is still controlled by the Moll family. Rede D’or’s successful IPO comes despite a hit to its business by the pandemic, which has reduced elective medical care.

Bank of America Merrill Lynch, Banco BTG Pactual S.A., Banco JP Morgan S.A., Banco Bradesco BBI S.A., XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A., Citigroup Global Markets Brasil, Corrretora de Câmbio, Títulos e Valores Mobiliários S.A., Banco de Investimento Credit Suisse (Brasil) S.A., Banco Safra S.A., Banco Santander (Brasil) S.A. were the underwriters of the offering in Brazil.

Pinheiro Guimarães acted as counsel to Rede D’or with a team led by partners Cristina Tomiyama (Picture), Bruno Lardosa, Francisco José Pinheiro Guimarães, René Brunet and associates Camila Ohno, Luiza Furtado, Caio Gioielli and Ana Beatriz Gurgel

Skadden, Arps, Slate, Meagher & Floom LLP advised Rede D’Or with a team led by partners Mathias von Bernuth and associates Lauren Bennett, Karina Cardozo de Oliveira e Henrique Silva

Lefosse Advogados advised the underwriters with a team led by partners Rodrigo Junqueira, Roberto Zarour, Felipe Gibson and Jana Araujo and associates Julio Queiroz, Sara Abdu, Mariana Okada, Leonardo Gaspar, Beatriz Lavigne and Lucca Margoni

Shearman & Sterling advised the underwriters with a team led by partners Roberta B. Cherman and Stuart K. Fleischmann and associates Raissa Fini, Gabriela Cequeira and Gabriela Laufer

Mattos Filho advised GIC and Carlyle as selling shareholders with a team led by partner Vanessa Fiusa and Pedro Whitaker de Souza Dias and associates Guilherme Woo, Henrique Ferreira Antunes and Scylla de Moraes Barros Fucs.

Demarest Advogados advised advised GIC and Carlyle as selling shareholders with a team led by partner Thiago Barbosa Sandim and associates João Paulo Minetto and Marcelo Peloso

Involved fees earner: Thiago Barbosa Sandim – Demarest; João Paulo Minetto – Demarest; Marcelo Peloso – Demarest; Sara Abdu – Lefosse; Jana Araujo – Lefosse; Rodrigo Junqueira – Lefosse; Leonardo Gaspar – Lefosse; Felipe Gibson – Lefosse; Julio Nunes Queiroz – Lefosse; Mariana Okada – Lefosse; Roberto Zarour – Lefosse; Scylla de Moraes Barros Fucs – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Henrique Ferreira Antunes – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Vanessa Fiusa – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Pedro Whitaker de Souza Dias – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Guilherme Woo de Moraes Terra – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Luiza Furtado – Pinheiro Guimarães; Bruno Lardosa – Pinheiro Guimarães; René Mostardeiro Brunet – Pinheiro Guimarães; Camila Ohno – Pinheiro Guimarães; Francisco José Pinheiro Guimarães – Pinheiro Guimarães; Cristina Tomiyama – Pinheiro Guimarães; Caio Tonanni Gioielli – Pinheiro Guimarães; Gabriela Cerqueira – Shearman & Sterling; Roberta Cherman – Shearman & Sterling; Raissa Fini – Shearman & Sterling; Stuart Fleischmann – Shearman & Sterling; Gabriela Laufer – Shearman & Sterling; Lauren Bennett – Skadden Arps Slate Meager & Flom; Karina Cardozo De Oliveira – Skadden Arps Slate Meager & Flom; Henrique de Castro Silva – Skadden Arps Slate Meager & Flom; Mathias von Bernuth – Skadden Arps Slate Meager & Flom;

Law Firms: Demarest; Lefosse; Mattos Filho Veiga Filho Marrey Jr & Quiroga; Pinheiro Guimarães; Shearman & Sterling; Skadden Arps Slate Meager & Flom;

Clients: Banco Safra; Banco Santander Brazil; Bank of America Merrill Lynch; Bradesco BBI; BTG Pactual; Carlyle Group; Citigroup Global Markets Brasil, Corretora de Câmbio, Títulos e Valores Mobiliários S.A.; Credit Suisse Brasil S.A.; GIC Private Limited; JP Morgan; Rede D’Or São Luiz; XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A.;

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Author: Ambrogio Visconti.