Mediclinic fall before rights offer

Comment on this story
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

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines