Ramsay (RHC) compete SPP with strong demand
Ramsay Healthcare (RHC) +3.45%: announced the results of the SPP today, with more than half of eligible shareholders applying for shares Ramsay opted to upscale the offer by an additional $100m. A total of $695m was applied for, with allocations being scaled based on the holding as at the 21st of April when the deal opened. An interesting approach from the Ramsay board here, not one often seen in SPP offers. Usually applicants are scaled based on their bid amount rather than holding and throws a spanner in the works for those holding a handful of shares hoping for a capital raise to come along.
It also could mean RHC will see less selling pressure once the shares are allotted – with smaller holders receiving a relative allocation, it may mean less need to re-weight portfolios. We own Ramsay in the Growth portfolio, picking up shares at a discount through the SPP is great, but we like the medium trend in hospital exposure as people return to elective surgeries and emergency departments. We remain bullish.
Ramsay Healthcare (RHC) Chart
