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Al-Hammadi Company for Development and Investment is planning to increase the bed capacity of Al-Nozha Hospital from 428 to 600, capitalizing on the proceeds of its initial public offering that took place in June 2014.
The expansion, which comes to meet the predicted growing demand for medical services in the private sector, would cost nearly SAR 20 million.
The company said the total cost of the project before and after increasing the bed capacity is about SAR 663 million and SAR 683 million, respectively.
The capacity increase would be financed by the offering proceeds and the company’s cash. Possible delays would have no impact on the company, Al-Hammadi added.
Construction and trial operation are expected to start in the first quarter of 2016, instead of the date previously set for the third quarter of 2015.
About 64.5 percent of Al-Hammadi Hospital in Nozha was complete till Dec.31, compared to 45 percent in the prospectus. The expansion will be implemented as scheduled in the prospectus.
The IPO net proceeds and fees stood at SAR 605.3 million and SAR 24.7 million, respectively, totaling SAR 630 million.
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