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Johannesburg – Because of a decreased demand for equities, Life Healthcare shareholders have had to settle for raising R5.2bn prior to floating the hospital group's stock on the JSE instead of the R7bn they had hoped for.
Investors have taken up 389 million of the 421 million shares on offer at 1 350c per share, the company announced on Friday.
"The total value of shares placed was R5.25bn, representing an effective free float of 37.35%," said Life Healthcare. The figure is also down from the 42% stake it had initially wanted to sell at between 1 450c and 1 700c/share
On Wednesday, a source close to the process admitted the lower-than-expected demand would force the offer price and quantity of shares to drop. "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."
The company had to delay the listing by two days, while major shareholders Mvelaphanda Group and Brimstone Investment Corporation have also had to lower their sale ambitions. Brimstone initially aimed to sell 98% of its 22% stake in the company, but could only reduce its stake to 15.79%. Mvela will still own 16.49%, down from the original 22%.
"These figures do not include any shares that may have been acquired by affiliated entities in the offer," said Life Healthcare.
- Fin24.com
Investors have taken up 389 million of the 421 million shares on offer at 1 350c per share, the company announced on Friday.
"The total value of shares placed was R5.25bn, representing an effective free float of 37.35%," said Life Healthcare. The figure is also down from the 42% stake it had initially wanted to sell at between 1 450c and 1 700c/share
On Wednesday, a source close to the process admitted the lower-than-expected demand would force the offer price and quantity of shares to drop. "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."
The company had to delay the listing by two days, while major shareholders Mvelaphanda Group and Brimstone Investment Corporation have also had to lower their sale ambitions. Brimstone initially aimed to sell 98% of its 22% stake in the company, but could only reduce its stake to 15.79%. Mvela will still own 16.49%, down from the original 22%.
"These figures do not include any shares that may have been acquired by affiliated entities in the offer," said Life Healthcare.
- Fin24.com
