Strong support from its retail shareholder base for Ramsay Health Care’s $1.4 billion fundraisings which is now $1.5 billion.
Funds from the Capital Raising will be used to partially repay certain revolving debt facilities which will remain available for redraw by the company.
The support came in the face of the COVID-19 pandemic as retail investors pumped in an extra $100 million to the offer, taking the amount to $300 million.
The private hospital operator unveiled a $1.2 billion institutional placement in April to ensure liquidity as elective surgeries shut down and private operators were called upon to help state governments in the fight against COVID-19.
A retail offer of $200 million was then run and was overwhelmingly supported.
The retail purchase plan was open to just over 80,000 investors and about half of those wanted shares, with applications totalling $695 million.
Ramsay management said it was able to increase the scale of the raise from a planned $200 million to $300 million. Investors bought in at $56 a share, which was 16% below Friday’s closing share price of $66.70.
Ramsay shares jumped another 3.4% in yesterday’s bullish market to end at $69, adding to the paper gains for those who took part in both offers.
The past few weeks has seen Ramsay reach deals with each state government to ensure its costs are covered as it provides services throughout the pandemic.
Each agreement is slightly different but it means the company will be supporting public hospitals for the next few months and potentially into 2021.
Chief executive Craig McNally said in Monday’s statement the fundraising the would “strengthen Ramsay’s balance sheet and increase financial flexibility in an uncertain operating environment.”