Cairo-Mubasher: Beltone Financial Research set the fair value (FV) of Cleopatra Hospital Company at EGP 10, with assigning a "Buy" recommendation, according to a statement.
The FV reflected a 8% possible rise in Cleopatra’s stock from its recently adjusted market price.
The stock reached EGP 9.25 at the close of Monday’s session, falling 2%.
Cleopatra’s indebtedness, before deducting Initial Public Offering (IPO) proceeds, is “very large” as it got a loan from Commercial International Bank (CIB) to fund 100% of the company’s acquisition of Cairo Specialized Hospital. As a result, Cleopatra’s net debt-to-equity ratio stands at 1.6x by the end of 2016.
A total of 40 million shares, to be floated in Q3-16, will be mortgaged to the CIB as collateral for Cleopatra’s loan.
Cleopatra decided not to pay out dividends in 2016 and 2017, yet it will start distributing 50% dividends as of 2018, Beltone added in the report.
