Singhe Hospitals debuts today on CSE

Tuesday, 21 April 2015 01:31 - - {{hitsCtrl.values.hits}}

First with an IPO in 2015, Singhe Hospitals Ltd. will debut today on the Colombo Stock Exchange. The company managed to conclude its Rs. 250 million IPO using the full quota of days in March despite bearish sentiments. It offered 25% stake or 100 million shares at Rs. 2.50 each. The Issue opened for the public on 12 March and closed on 30 March. The IPO drew 497 applications requesting 107 million shares worth Rs. 267.4 million. The basis of allotment was 100% allocation up to eight million shares applied and a minimum of eight million shares plus 95.05% of the balance shares applied if original application is for over eight million shares. Security code assigned is SINH-N-0000 with 398.225 million shares listed. Situated in the heart of Ratnapura, Singhe Hospital is a BOI-approved project started in December 2009 and enjoys a five-year tax holiday. The first private hospital to be established in the Sabaragamuwa District, Singhe Hospital reportedly records 15,000-20,000 patient visits monthly. Of the Rs. 250 million IPO, Rs. 140 million will be used to partially settle the loans obtained from Bank of Ceylon and Rs. 30 million to settle the bank overdraft facility. This will enhance earnings per share and the net asset value of the company with 100% savings due to tax-free BOI project. Balance funds will be directed towards the purchase of medical equipment, including new laparoscopy and mammography machines, in addition to the planned expansion of lab facilities, the establishment of an eye surgical unit, construction of a new car park and the purchase of fresh pharmaceutical and lab stocks. As per the share valuation prepared by B.R. De Silva & Co. Chartered Accountants included in the prospectus for prospective investors, free cash flow valuation stood at Rs. 2.59 per share whilst the price to book value valuation stood at Rs. 1.73 per share. Singhe Hospitals posted revenue of Rs. 164 million as at 31 March 2014, up from Rs. 33.3 million in 2013. The company incurred finance costs of Rs. 51.9 million, up from a previous Rs. 50.6 million leading to a Rs. 131.6 million loss for the year, as compared with a loss of Rs. 107.9 million in 2013. Notably, total comprehensive income for the year declined sharply to Rs. 37.1 million boosted significantly by a Rs. 94.5 million gain on revaluation of land and building in 2014. Basic loss per share stood at Rs. 4.69, against a previous Rs. 7.19 per share.

Bourse slips on profit taking

Reuters: Shares slipped on Monday from their more than one-month closing high hit in the previous session, as investors booked profits after three straight sessions of gains, brokers said. The main index slipped 0.09%, or 6.03 points, to 7,080.38, after closing at its highest since 16 March on Friday. It had gained 2.7% as of Friday since the central bank cut rate on Wednesday, while yields on government securities have fallen 30-50 basis points. Stockbrokers said there was some profit-taking during the day with local investors mainly on the buying side. The market saw a net foreign inflow of Rs. 184.9 million ($ 1.39 million), extending the net foreign inflow so far this year to Rs. 3.58 billion. Turnover was Rs. 493.3 million, the lowest since 8 April and less than a half of this year’s daily average of around Rs. 1.1 billion. The market is dull due to political uncertainty and many are on a wait-and-see mode before the parliamentary elections, said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd. Shares of Hatton National Bank Plc fell 1.39 percent, while conglomerate John Keells Holdings Plc fell 0.48%. The index lost 6.6% last month, its biggest monthly drop since October 2012, as investors sold their holdings to settle margin trades amid concerns about political stability and a rise in interest rates. Investors have been cautious due to political uncertainty as Prime Minister Ranil Wickremesinghe’s party did not have a majority in parliament, stockbrokers said. They said, however, efforts by both ruling and opposition parties for a stable government have helped to improve investor confidence, adding that investors were still largely on a wait-and-see mode ahead of parliamentary elections possibly in June.