Cleopatra Hospital Company revealed on Wednesday that the guide price for the initial public offering (IPO) in the Egyptian Exchange (EGX) will range between EGP 8.75 and EGP 11.88 per share, noting that the final price of the IPO may be less than the guide price.
The company disclosed in a press release last Thursday that it will offer a maximum of 40m ordinary shares. This number represents 25% of the total equity capital of the hospital that is registered in the EGX.
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. The other public offering will be to the public in the Egyptian market, as a joint offering.
The plan for promoting the private IPO includes attracting financial institutions and investors with high solvency from the Gulf markets and Dubai in particular, in addition to the markets of South Africa, London, and the United States.
The company said the IPO of the mentioned shares increase would be limited to the selling shareholder through the offering. This will happen following the joint offering and the beginning of trading in the EGX.
Chief executive officer Ahmed Ezzeldin said the company intends to employ the proceeds to supporting and financing the capital expenditures of the planned expansions at Al-Shorouk and Cleopatra hospitals, as well as purchasing a plot of land in New Cairo to establish a new hospital.
Ezzeldin added that the company plans to establish clinics in the New Urban Communities and study expansion outside Greater Cairo in the coming period.
Cleopatra set up an account to support and stabilise the share price following the IPO, which will include 15% of the IPO proceeds.
Care Healthcare Ltd. is considered the main shareholder in Cleopatra hospital with 99.99%.
The structure of Care Healthcare Ltd’s shareholders includes a group of investors and international financial institutions, including Abraaj NAH Limited with 72.4%, the European Bank for Reconstruction and Development (EBRD) with 12.5%, the German Investment Corporation (DEG) with 7.55%, and the French Development Agency PROPARCO (AFD) with 7.55%.
The capital of Cleopatra hospital holding company is EGP 80m distributed on 160m shares with a face value of EGP 0.5 per share.
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.