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· RH Bophelo hospital group will be making a secondarylisting on the Rwanda Stock Exchange on 1 June. This is a part of thecompany’s initiative to spread its operations to East Africa
· The group is optimistic about its investment decision tolist at Rwandan Stock Exchange and hopes that more investors willback its low-cost healthcare model
RH Bophelo hospital group will be making a secondary listing on the Rwanda Stock Exchange on 1 June. This is a part of the company’s initiative to spread its operations to East Africa. The group is optimistic about its investment decision to list at Rwandan Stock Exchange and hopes that more investors will back its low-cost healthcare model.
The group owns nine hospitals and manages six on behalf of smaller standalone hospitals. It has been listed in the JSE (Jonesburg Stock Exchange)for almost three years. Ever since, its shares have fallen 2.4%. However, Netcare, the largest hospital group in the country, has seen its shares plummeting to more than 44% over the same period. Mediclinic and Life Healthcare Group, other leading hospital chains, also recorded 53% and 31% losses respectively during the same period.
RH Bophelo predominantly targets lower and middle-income earners who cannot afford medical aid, but also do not want to avail services of state hospitals. Importantly, the hospital group in a related acquisition has taken over Generic Insurance, a company that sells hospital and medical insurance cover. The rationale was that it will be able to sell cover to most of the people who visit its hospitals. However, that plan hinges on continued existence of these insurance products in SA as the regulator is thinking of a possible ban of such products shortly. .
The group is also attracted by the Rwandan exchange for mobilizing more resources. It hopes that the investors can trade stocks in another country, attracting investors from neighboring countries like Kenya, Uganda, and Tanzania.
