Dallah Healthcare Hold announces the dev.of use of proceeds of its IPO

30/04/2014 08:18 AST

Dallah Healthcare Holding Announces the development of use of proceeds of its IPO that happened in the period from 19/11/2012 to 25/11/2012, here the gross proceeds amounted to SR539.6m and net of SR513.1m after deducting the IPO costs of SR26.5m.

The total proceeds used as at 31 March 2014 are as follow:

1-Paid a total amount of SR38m representing the acquisition price of Pharmaceuticals, Herbal and Cosmetics factory.This follows under the category of investment in healthcare projects and companies according to the prospectus.The total acquisition value of this factory represents 24.8% of the designated proceeds under this category or 7.4% of the net IPO Proceeds. The category of investment in healthcare projects and companies represents 29.9% of the net IPO proceeds.

2-An amount of SR 133.8m against buying of land in west Riyadh area.

3-An amount of SR 6.2m against payments for engineering works and land survey.This follows under the category of using the proceeds of constructing a hospital in west Riyadh Area as described in the prospectus. The total cost of this hospital should represent 70.1% of the net IPO proceeds. The actual payment on this project represents 27.3% of the net IPO Proceeds.

4-It is estimated according to the tenth item in prospectus, that the land of this project should cost about SR 85.6m. The increase of the actual cost of land over the estimate is due to its existence in a better location serving wider customer base in addition to its total bigger area that what was originally estimated.

5-Since the company strives to finding the best location to construct in west of Riyadh, this took some additional time and accordingly work on this project is rescheduled to start in the Q1 of 2014 instead of the Q1 of 2013 as estimated in the prospectus, and therefore the projects is expected to be fully completed in 48 months period. Experimental pre-operating of the hospital is expected to be started in Q2 of 2016 instead of Q4 of 2015 as estimated in the prospectus.

6-Works on excavational digging in the West Riyadh location started in the 6th of March of 2014.

7-Therefore, the west Riyadh project completion is estimated to be 1% in relation of the whole project as at the end of March 2014. Completion of this project is following what is estimated in the prospectus after taking into consideration the rescheduling in item 5 above.

Tadawul