AGILUS Diagnostics, an India-based indirect subsidiary of IHH Healthcare : Q0F 0%, will no longer launch its initial public offering (IPO) through an offer of sale issuance proposed late last year. IHH on Wednesday (Feb 14) said that this was due to “commercial considerations”.

The Malaysian hospital operator added that the decision was made “in consultation and mutual agreement” with private-equity investors, along with the boards of directors of both Fortis Healthcare and Agilus. Fortis is a 31.17 per cent-owned indirect subsidiary of IHH, and is the holding company of Agilus.

These parties held meetings on Feb 13, where they greenlighted Agilus’ withdrawal of its draft red herring prospectus (DRHP). It was filed by Agilus with the Securities and Exchange Board of India (SEBI) and dated Sep 29, 2023. The private-equity investors comprise International Finance Corporation, Nylim Jacob Ballas India Fund III and Resurgence PE Investments.

IHH said that going forward, Agilus will make the necessary application to SEBI for its withdrawal of the DRHP immediately – though the company “may re-file again for a proposed IPO in future, subject to applicable laws”.

Shares of IHH were flat at S$1.74 before the group called for a trading halt prior to the midday break on Wednesday.