Sale of nearly 30% of shares brings in $5.2 million.
Almost 5 million shares, equal to 29.5 per cent of the charter capital in the Hanoi Transport Hospital, were sold at its IPO on October 21, with a starting price of VND10,000 ($0.44) per share.
Thirty-three investors registered to buy 11.7 million shares, or more than double those on sale. The Hanoi Stock Exchange (HNX) said that one investor was willing to buy all shares at a price of VND26,000 ($1.16) each.
All shares, however, were sold to one private investor and one institutional investor at a price of VND23,579 ($1.05) each, for a total return of VND116.8 billion ($5.2 million); VND67.3 billion ($3.01 million) higher than the total based on the starting price.
This is the first public hospital to pilot equitization under a government direction made in mid-2014. The hospital currently has 363 beds and can treat 500,000 outpatients and 11,000 inpatients each year.
The hospital’s charter capital has now increased from VND168 billion ($7.5 million) to VND435.5 billion ($19.5 million). It will continue to sell State capital, eventually bringing it down to around 30 per cent.
Deputy Director Le Tuyen Hong said that hospital services will improve after the IPO, with greater investment in modern equipment.
The successful IPO has bolstered expectations over IPOs at other public hospitals. Some experts believe, however, that the State should not conduct IPOs in hospitals where investors pay less attention, such as those treating tuberculosis and HIV.