Second hospital to sell shares

JAKARTA (JP): Graha Medika Hospital will float its shares on the local stock exchange to raise funds to finance debts and new medical equipment.

The company said yesterday it would sell 55 million new shares or 28.41 percent of its total enlarged capital to the public early next year.

The company will be listed on the Jakarta and Surabaya stock exchanges to become the country's second listed hospital operator after PT Siloam Gleneagles Health Care (SGHC).

Siloam, an affiliate of the widely diversified Lippo group listed its shares on the Surabaya Stock Exchange early this year.

Graha Medika said yesterday that the stocks, with a par value of Rp 500 each, would be sold for between Rp 500 and Rp 600 each (1.5 U.S. cents).

The company said about 50 percent of the proceeds from the initial public offering (IPO) would be used to repay debts and the balance would be used to finance the purchase of the hospital's medical equipment.

Graha Medika Hospital, which recently recorded a 70 percent occupancy rate, posted a net profit of Rp 41.96 billion (US$10.49 million) in 1996, up 18 percent from Rp 35.31 billion in 1995. The hospital posted a net profit of Rp 28.74 billion in 1994.

The company said the 223-bed Graha Medika hospital, which employs 218 specialists and 29 general doctors, targets middle and upper class consumers in Indonesia. (aly)