A British operator of hospitals, the Spire Healthcare Group said that it expected its IPO in London to value the company at approximately $1.6 billion.

Spire said that it expected to price its initial public offering at £2.10 to £3 per share. In the midpoint of that range, Spire Healthcare Group would be valued at around £955 million or roughly at $1.6 billion.

Spire Group expects to raise around £315 million in proceeds from the offering, which it will use for reducing debt. The initial public offering will equal approximately 45 percent of Spire Healthcare Group’s share capital.

Chief executive officer of Spire Healthcare, Rob Roger said that they believe the dynamics of the U.K. health care market are strong and it will strengthen further given the increasing life expectancy and growing population of United Kingdom.

The IPO is expected to include shares held by Cinven, the private equity firm. In 2007, through the purchase of 25 hospitals from Bupa, a private healthcare group, Cinven created Spire. Since then, £509 million been invested in the business. In Britain, Spire currently operates 13 clinics and 39 private hospitals as well as employs around 7,600 people. Spire Healthcare treats around 930,000 patients every year.

Roger added that with a strong track record, Spire represents an opportunity to invest in a business and they look forward to welcoming new investors, including their employees and consultants, as they embark on the next phase of growth. He further added that they remain committed to providing the highest quality patient care whilst seeking to deliver sustainable returns for their shareholders.

Spire Healthcare Group will be the United Kingdom’s only private hospital operator which will be listed on the London Stock Exchange and which generates more than half of its revenues through private medical insurance (PMI) providers. Almost a quarter of Spire Healthcare’s sales come from NHS.

Numis, Bank of America Merrill Lynch, Morgan Stanley and JPMorgan Chase are acting as underwriters on the Spire IPO.