Singhe Hospitals share shows resilience despite IPO setback

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"The share opened for trading at Rs.2.70, up 20 cents from the IPO price"

The debutant Singhe Hospitals share showed resilience at the opening day of trading despite the earlier negative responses the company’s Initial Public (IPO) Offering received.

The share opened for trading at Rs.2.70, up 20 cents from the IPO price and traded between Rs.2.50 and 2.80 before closing at Rs.2.50.
The number of shares traded was 4.22 million.

The hospital company raised Rs.25O million offering 100 million ordinary voting shares, each at Rs.2.50.
The money was raised to settle debt and for capacity expansion.

A brokerage in a research report advised investors not to subscribe to Singhe Hospitals IPO on concerns relating to company’s profitability.
However, Singhe Hospitals Managing Director Navinda Weerasinghe said the company’s profits would grow in 2015/16 and dividends would be paid to investors.