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| Wednesday, 8 October 2003 |
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Durdans Rs 240 m IPO on Oct 17 By Chamitha Kuruppu The Rs 240 million Durdans Hospital Initial Public Offering (IPO) will open on October 17. The IPO comprises 4,500,00 new ordinary shares at Rs 25 (Premium of Rs 15) and 6,375,000 new non voting shares of Rs20 (premium of Rs 10) Joint managers to the issue will be DFCC Bank and Commercial Bank. Lawyers would be Nithya Partners and Bankers, the Commercial Bank. The reasons for the IPO is to expand and improve infrastructure facilities, add new capacity and eq1uipment, to implement a management information system and to retire some of its debt Chairman of the Durdans Hospital Ajith Tudawe told the media yesterday. Of the Rs 240 million which will be raised through the IPO Rs 77.5 million through the IPO for the expansion of infrastructure facilities, Rs 83 million to settle finances obtained for capital expenditure, Rs 38.5 million to retire debt obtained to purchase medical equipment, Rs 28 million to purchase new medical equipment and Rs 13 million to develop of communication and information management infrastructure. Applicants for combination of voting and non-voting shares will be given priority in allotment, said Tudawe. Every applicant who is allotted shares under this issue will be entitled to a discount of 15% on hospital charges in respect of indoor treatment bills and outdoor diagnostic services. The total discount value entitled per annum shall not be greater than 10% of the par value of the number of shares held by the shareholder. The issue will also facilitate the administration of Durdans shares to the official list of the Colombo Stock Exchange towards enhancing the marketability of the shares among the public and allow the company greater access to the domestic capital market. The entirety of the 4,500,000 voting shares at Rs 25 each, amounting to Rs 112.5 million being issues to the public under this invitation underwritten by Commercial Bank of Ceylon Limited (Rs 62.5 million) and DFCC Bank (Rs 50 million). The total number of issued shares of the hospital company which was 15,000 million will increase to 25,875 with 10,875 new shares of the IPO. Tudawe said that while continuing with the present 15% dividend rate and with the IPO the company hopes to give 'more handsome dividends' to its shareholders. One of the oldest private medical establishments is owned and operated by Ceylon Hospitals Limited incorporated in May 1945. Durdans has the capacity to accommodate 125 patients at present and has average occupancy rates ranging from 95%-100%. Over the last three decade, the management of Durdans has implemented a program to remodel and modernise the hospital, with the vision of becoming one of the finest private healthcare institutions in the city of Colombo. Durdans has invested over Rs 15 million in an Enterprise resource Planning (ERP) system. This is expected to enhance performance and over time create a workforce more attuned to change and focussed on higher value added tasks. The hospital company recorded a consolidated turnover of Rs 597.8 million and an attributable consolidated net profit of Rs 62.2 million during the financial year 2002/2003. This compares with a consolidated turnover of Rs 454.6 million and a net profit of Rs 46.7 million in the previous year, which is an increase of 32% in turnover and 34% in net profits over the period. The board of Directors of Ceylon Hospitals comprise A.E.Tudawe, Dr.D.P.A. Wijegoonawardena, S.P Tudawe, Dr. A.N. Dhrmawansa, Y.N.R.Piyasena and Dr.K.A.T.W.P Jayawardena. |
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