Dallah uses rights issue proceeds to fund projects, acquisitions

Dallah Healthcare Holding said it ​has used proceeds from its November 2012 rights issue, totaling SAR 539.6 million, to fund ongoing projects and acquisitions.

The company pointed out that the offering costs of the issue reached SAR 26.5 million, and the remaining net cash amounted to SAR 513.1 million.

Dallah capitalized on the proceeds until December for several of its expansion projects.

The Saudi-based company acquired a pharmaceuticals, herbal, and cosmetics factory at a total value of SAR 38 million, or 7.4 percent of the remaining net cash.

It also bought a land plot in west Riyadh at SAR 133.8 million.

The Tadawul-listed company paid a total of SAR 19.4 million for engineering works, land survey and enabling work in the west Riyadh hospital.

The whole project is expected to be completed in 43 months, and the pilot operations will start in second quarter 2016. As of December, the project was 12 percent complete.