Georgia Healthcare Group Joins Premium Listing of London Stock Exchange

The shares of Georgia Healthcare Group have been admitted to the premium listing of the London Stock Exchange and the first trade of the Georgia Healthcare Group shares have taken place.

Georgia Healthcare Group manages medical corporation Evex and insurance company Imedi L, the largest provider of medical insurance and healthcare services in the country.

By placing its shares on the London Stock Exchange, the Georgia Healthcare Group has attracted new capital of USD 100 million. This investment will be used for the further development of the clinic network Medical Corporation Evex, creating a modern medical infrastructure, implementing innovational medical technologies and improving healthcare services.

Georgia Healthcare Group is the first healthcare company in the region to be listed on the London Stock Exchange and its shares can be seen alongside world famous hospital brands: NMC Health, Al Noor Hospitals, and Spire Healthcare.

This is another Georgian example of a successful, stable and future-oriented business, which creates a trust-worthy environment for the foreign investors and is a prerequisite for the long-term development of the Georgian economy.

We spoke to the General Director of Georgia Healthcare Group – Nikoloz Gamkrelidze.

Mr. Gamkrelidze, Georgia Healthcare Group is the second company after the Bank of Georgia to be admitted to the premium listing of the London Stock Exchange. Will foreign investors now be more interested in investing in Georgian healthcare?

Nikoloz Gamkrelidze: After making the first public offer we attracted USD 100 million and numerous big investors got interested in purchasing the shares of our group. We sell purely healthcare business, which around the globe is characterized with rather high levels of income and rarely reacts to macroeconomic fluctuations. According to recent studies, throughout the world, including in Georgia, life expectancy has increased, thus increasing the demand for healthcare services. New and innovational medical technologies are also being developed quickly, and, despite the overall living conditions, people still spend a lot of money on medical services. Investors know this and are therefore very interested in healthcare. As yet the healthcare expenses are quite low in our country, which, in absolute numbers, amounts to USD 200 per person. Although not much at the moment, analysis of life expectancy suggests that in 10 years our country can reach the level of Turkey, where the medical expenses per person amount to an average of USD 500-600. 10 years ago Turkey was where we are today.

What will the attracted investment be spent on?

Georgia Healthcare Group, which manages Medical Corporation Evex and insurance company Imedi L is one of the most dynamically growing businesses in Georgia. We are now entering the phase of an even bigger growth. New capital will be completely spent on developing the business. We will create an even more modern infrastructure, establish innovational medical technologies, strengthen the primary healthcare and increase the ambulatory network, which is a big challenge for the country. Additional capital will support the development of healthcare in Georgia, and access to medical services for the population will increase significantly. We expect to soon be able to strengthen the oncological, laboratory and pediatric services, thus considerably increasing customer satisfaction. By implementing new and innovational technologies, the population of our country will have the chance to undergo treatment in Georgia and this will result in there no longer being a necessity to leave the country for the treatment of specific illnesses.

What did you have to do to get admitted to the London Stock Exchange?

Our group has been admitted directly onto the premium listing, where the requirements and regulations are even stricter. In the first place, you need to show the strategy that you are working towards and what type of growth you plan. Your financial results must be public and transparent and the company audit carried out by the Big Four. Apart from financial results, the company is obliged to correctly evaluate those risks that can affect the development of the business. There is an organization named UK Listing Authority which grants permission to be admitted to the London Stock Exchange, and it was one of the regulators which examined the Georgia Healthcare Group practically from top to bottom.

The conclusion of the UK Listing Authority signals to investors that it is worth putting their money into your company, that you are distinguished by a high level of transparency, a high quality of corporate management, and that you satisfy the demands of the international stock markets. Being an affiliated company of the public Bank of Georgia Group facilitated our admission to the London Stock Exchange because its shares have been listed on the same since 2006. Our Group satisfies all those standards that the UK Corporate Governance Code requires from companies.

How will being admitted to the London Stock Exchange listing reflect on the employees of the company?

Every employee will be proud to work in such an organization which is strong, transparent and, most importantly, stable. This will also reflect on the financial welfare of the employees. Apart from this, the attracted investments will enable us to implement large projects which will support the creation of new working places in the country. All of this together will result in the improvement of the macro-economic parameters of Georgia, thus developing the healthcare system of the country.

23 November 2015 21:13