Mediclinic fall before rights offer

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Mediclinic Independent Newspapers Mediclinic Morningside in Johannesburg. Photo: Leon Nicholas.

Shares in South Africa-based international private hospital group Mediclinic (MDC) lost more than 9% in early trade on Monday ahead of its rights offer.

At 10.27am‚ the shares were off 9.66% at R38.89. Over the past 12 months‚ the stock has gained 28.84%.

Matthew Menezes‚ healthcare analyst at Avior Research‚ said the reason behind the fall in the share price was a JSE Sens announcement last month which indicated Mediclinic would try to raise R5bn by issuing 174 million new Mediclinic shares on September 14 2012.

“This is a one-off‚ this is the new level Mediclinic will be trading from‚” Menezes said. - I-Net Bridge

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