The board of directors of Cleopatra Hospital Group, one of Egypt’s largest hospitals in the private sector in Egypt in terms of bed numbers, approved in its most recent meeting on Monday making a request to regulatory authorities to go through the procedures of increasing the company’s issued capital by EGP 700m.
The company seeks to carry out this increase of its capital through inviting old shareholders to underwrite in the stocks of a nominal value of 50 piasters per stock, while activating the right to underwrite separately from the main stock, according to a disclosure sent by the company to the Egyptian stock exchange (EGX).
The company has plans for expansions over the upcoming period. The plans include using the increase in its capital to implement an acquisition of a hospital comprising 150 beds, with an amount worth EGP 580m. “This will allow the hospital to expand the scale of its operation across the country,” according to the report by Cleopatra Hospital Group. Within the framework of the plan to carry out this expansion, the hospital has signed a memorandum of understanding (MoU) with the owners of the hospital planned to be acquired. The company is currently holding studies regarding the acquisition.
Cleopatra Group also aims to allocate part of the increase in the capital to support the profitability of the group through repaying a portion of its due loans and returns worth EGP 120m, resulting in a decrease in the financial expenses with the high banking interest rate at the present time.
Last week, the Group announced its business results for the quarter ending in June. The results showed that the company was able to achieve EGP 261.8m revenues with 29% increase year-on-year.
Cleopatra Hospital Group and its affiliate companies are specialized in offering a package of healthcare services in Egypt through four main hospitals in Greater Cairo, which are Cleopatra Hospital, Cairo Specialized Hospital, Nile Badrawy Hospital, and Al Shourouk Hospital.