Healthscope and its private equity owners plan to raise 2.57 billion Australian dollars in the country's biggest initial public offering (IPO) in more than three years.

Australia’s second largest private hospital operator and existing investors will sell 1.12-1.28 billion shares at A$1.76 to A$2.29 each, Healthscope said yesterday.

TPG Capital and Carlyle Group will keep a combined stake of 25-40 per cent after the sale, which will give the company a market value of as much as A$3.8 billion.

"Given the aging demographic, healthcare is a sector that many analysts believe is going from strength to strength," Sam Fimis, a private client adviser at Patersons Securities, said.

“Investors want to park their capital in a safe and defensive industry.” – (Bloomberg)