Dallah Health Care announces developments of use of November 2012 IPO proceeds

Dallah Healthcare Holding Announced today on Tadawul the development of use of proceeds of its IPO which took place in the period from 19/11/2012 to 25/11/2012.

 The gross proceeds amounted to SAR 539.6m and net of SAR 513.1m after deducting the IPO costs and fees of SAR26.5m.
The total proceeds used till 31 March 2014 are as follow:

1- An amount of SAR 38m representing the acquisition price of Pharmaceuticals, Herbal and Cosmetics factory.

This falls 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 SAR 133.8m for the purchase of land in west Riyadh area.

3- An amount of SAR 6.2m for engineering works and land survey. This falls 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.

 According to the prospectus; the land of this project should cost SAR 85.6m. The increase of the actual cost of land over the estimate is due to its existence in a better location to serve a wider customer base in addition to its larger area than what was originally estimated.

The company also said that it strove to find the best location in west of Riyadh, which took longer time and accordingly work on this project is rescheduled to start in Q1-2014 instead of Q1-2013 as was estimated in the prospectus. The project is expected to be fully completed in 48 months period. Trial run of the hospital is to be started in Q2-2016 instead of Q4-2015.Excavation works started in the 6th of March of 2014.

The completion percentage of the project as of March 31, 2014 is 1% which matches the prospectus after taking into consideration the rescheduling mentioned above.