Medica to raise €250m in IPO

French care homes group Medica will seek to raise at least €250m in an initial public offering (IPO), the bulk of which will pay down debt and fund expansion, an investor in the business said.

Some 90 percent of the IPO proceeds will go to reducing Medica’s debt and funding the firm’s expansion strategy, Dominique Gaillard, member of the executive board of AXA Private Equity, a co-investor in Medica alongside buyout house BC Partners, told Reuters.

The remaining 10% – a minimum of €25m – will be returns to the two groups and company management, who bought into the business in 2006, Gaillard said.

Medica is likely to float early in 2010.