HMI raises S$18.5 million from rights issue

PRIVATE healthcare provider Health Management International (HMI) has raised gross proceeds of about S$18.5 million from a rights issue.

According to HMI, its renounceable non-underwritten 11-for-200 rights issue, which was launched on Feb 23, had a subscription rate of about 145.7 per cent. Some 32.38 million rights share were offered at S$0.57 per share, on the basis of 11 rights shares for every 200 existing shares held.

The rights issue received applications for about 47.18 million rights shares, representing approximately 1.5 times the number of rights shares offered, when it closed on March 9. 

In November last year, HMI had announced that it had agreed to raise its stakes in its 49 per cent-owned Mahkota Medical Centre (MMC) and 61 per cent-owned Regency Specialist Hospital (RSH) to 100 per cent each. This will be for an aggregate price of RM556.5 million (about S$183.2 million).

The remainder of the purchase price will be funded by a combination of cash from a senior secured five-year term loan facility and 199.8 million new shares to be issued to non-controlling shareholders of MMC and RSH at an issue price of S$0.57 each.