Latham & Watkins Advises on Carlyle-Backed Rede D’Or IPO in Brazil

Latham & Watkins LLP advised The Carlyle Group in the global initial public offering (IPO) of Rede D’Or São Luiz, the operator of the largest independent private hospital network in Brazil. The offering is the largest IPO in Brazil since 2013 and the third-largest in Brazilian history.

The company and selling shareholders, which, in addition to Carlyle, included Singaporean state investor GIC and the company’s founders, raised proceeds of R$10.1 billion, or approximately US$2 billion. The shares were sold via a public offering in Brazil and a concurrent international placement in the United States and elsewhere outside Brazil, and were listed on the Novo Mercado segment of the São Paulo Stock Exchange.

Rede D’Or operates 51 hospitals and one government-owned hospital under the company’s management, as well as 32 projects under development across Brazil. The company also operates the largest oncology outpatient clinic network in Brazil, comprising 39 specialized oncology outpatient clinics strategically located in key states throughout Brazil. The company plans to use the proceeds of the IPO on the construction and expansion of facilities and on acquiring new assets, including hospitals, oncology clinics, and health insurance brokers.

Latham consistently leads the market in IPOs worldwide. Through the first three quarters of 2020, the firm held the #1 rank in global equity capital markets transactions, according to Bloomberg and Refinitiv. The Latham team that advised The Carlyle Group as selling shareholder in the Rede D’Or offering was led by partners Daniel Lennon and Roderick Branch.