Cleopatra Hospital announced on Thursday the allocation of subscription requests and determining the final price for the private placement for financial institutions including 34m shares of the company’s capital, owned by a number of current investors, at EGP 9.
The subscription was covered in the private placement for financial institutions by 6.73 times. Requests amounted to EGP 2.059bn ($231.9m). This brings up the company’s market capitalization to EGP 1.44bn ($162.2m) under the final price of the IPO, before issuing the capital increase shares to complete the offering and initiate trading.
The company will offer 40m ordinary shares. The upcoming IPO will be through two tranches. One to the financial institutions and individual investors, and investors with expertise in the field of securities for 34m shares. The other public offering will be to the public in the Egyptian market, as a joint offering. The company will issue shares to increase capital to carry out the combined offer and initiate trading on the EGX.
The company said the IPO of the mentioned shares increase would be limited to the selling shareholder through the offering. This brings up the number of free shares to 25% of the total equity capital of the hospital that is registered in the EGX, in the case of non-implementation of any stability operations to support and stabilise the share price, and keeping all shares from returning to original shareholders at the support account period.
The door to subscription will be closed for public offering on the EGX on Monday 30 May 2016. The trading begins after fulfilling allocation requirements announced in 21 May, in accordance with the provisions of the listing rules of the Egyptian Exchange. The number of shareholders will be a minimum of 300. Free trading shares must represent at least 5% of the total company’s equity.
A senior officer at Cleopatra Hospital said the company intends to employ the proceeds to supporting and financing the capital expenditures of the planned expansions
The company traces its roots back to 1976 and consists of four hospitals: Cleopatra Hospital, Cairo Specialised Hospital, Nile Badrawi Hospital, and Al-Shorouk Hospital in greater Cairo.
The company is also considering expansion opportunities outside of the scope of greater Cairo during the next phase. In 2015, the group conducted nearly 34,900 surgeries, treated more than 47,200 cases, 606,200 outpatients and 278,400 individuals at the emergency departments.
The operational unaudited results of the group in 2015 showed that the company’s profits amounted to EGP 741m. The gross profit registered EGP 234m, while the operational profit, before taxes, interest, depreciation, and amortization, recorded EGP 183m. The total net profit reached EGP 52m.
Selling shareholders will receive the total liquidity outcome of the the joint IPO. These proceeds, excluding the amounts used to support and stabilize the share price, will be reinjected through IPO of capital increase to implement the offering and initiate tradings on the EGX at the same final price as the offering. EFG-Hermes will lock 15% of the proceeds of the offering and set up an account to support and stabilise the share price following the IPO.
