KUALA LUMPUR (Feb 14): IHH Healthcare Bhd said Agilus Diagnostic Ltd, a subsidiary of its 31.17%-owned associate Fortis Healthcare Ltd, has decided to withdraw its initial public offer (IPO) application to the Securities and Exchange Board of India (Sebi).

In a filing to Bursa Malaysia on Wednesday, IHH said the withdrawal was due to "commercial considerations and in consultation and mutual agreement" with Agilus’s private equity investors and selling shareholders, namely International Finance Corp, NYLIM Jacob Ballas India Fund III LLC and Resurgence PE Investments Ltd.

It said the decision was made at a meeting held on Tuesday with the board of directors of Fortis and Agilus, without disclosing any reason for the withdrawal.

However, the healthcare group disclosed its intention to re-file the IPO prospectus with Sebi for a proposed IPO in the future.

“Agilus would be making the necessary application to Sebi for withdrawal of the said draft red herring prospectus (DRHP) immediately and may re-file with Sebi again for a proposed IPO in future, subject to applicable laws,” it said.

In August 2023, IHH announced that Agilus will initiate an IPO to list on Sebi via an offer of sale of equity shares to certain existing and eligible shareholders of Agilus in the IPO.

In November 2018, IHH acquired a 31.17% equity interest in Fortis, an India-based healthcare operational provider — through a preferential allotment by Fortis to an indirect wholly owned subsidiary of IHH — Northern TK Venture Pte Ltd, in a US$584 million (RM2.79 billion) deal.

Meanwhile, in November 2022, IHH said that it was in the midst of a discussion with Sebi to determine the next steps to proceed with the mandatory open offer for an additional 26% stake in Fortis, adding that should IHH receive approval it would be ready to undertake the offer in a timely manner.

At noon break on Wednesday, shares in IHH were down 1.61% or 10 sen to RM6.11, giving the group a market capitalisation of RM53.81 billion.