Johannesburg - The listing of hospital group Life Healthcare [JSE:LHC] will go ahead as planned, irrespective of whether all the book building conditions have been met after the close of the offer process on Wednesday.
Life Healthcare's listing on the JSE, in which existing shareholders have been offered up to 42% of the company's shares at between 1 450c and 1 700 cents per share, is planned for next week. However, indications were that demand for the shares was lower than envisaged, which could have delayed the planned listing.
The lack of demand can be attributed to general market uncertainty. Some analysts have also expressed concerns about the pricing of the shares, even though most are in agreement that Life Healthcare is a well-managed company.
"We'll sit and evaluate how many shares have been applied for and take it from there," an authoritative source close to the process told Fin24.com on Wednesday. "The market dictates the price. If the market feels the placement price should be lower than the quoted one, we'll have to lower it. We understand and can see the condition the market is in."
Similarly, if share applications were lower than the 42% threshold Life Healthcare wants, the company's shareholders will have to reduce the number of stocks offered for sale.
The company's major shareholders, Mvelaphanda Group and Brimstone Investment Corporation, each own 22% of the shares and have indicated they would unbundle or divest their respective stakes in the company.
Brimstone said it would be selling 98% of its Life Healthcare shares. Mvelaphanda Group would unbundle a large portion of its stocks to shareholders, with the rest offered for sale.
- Fin24.com
Life Healthcare's listing on the JSE, in which existing shareholders have been offered up to 42% of the company's shares at between 1 450c and 1 700 cents per share, is planned for next week. However, indications were that demand for the shares was lower than envisaged, which could have delayed the planned listing.
The lack of demand can be attributed to general market uncertainty. Some analysts have also expressed concerns about the pricing of the shares, even though most are in agreement that Life Healthcare is a well-managed company.
"We'll sit and evaluate how many shares have been applied for and take it from there," an authoritative source close to the process told Fin24.com on Wednesday. "The market dictates the price. If the market feels the placement price should be lower than the quoted one, we'll have to lower it. We understand and can see the condition the market is in."
Similarly, if share applications were lower than the 42% threshold Life Healthcare wants, the company's shareholders will have to reduce the number of stocks offered for sale.
The company's major shareholders, Mvelaphanda Group and Brimstone Investment Corporation, each own 22% of the shares and have indicated they would unbundle or divest their respective stakes in the company.
Brimstone said it would be selling 98% of its Life Healthcare shares. Mvelaphanda Group would unbundle a large portion of its stocks to shareholders, with the rest offered for sale.
- Fin24.com