A rapid skim of analyst opinions show Aster DM’s IPO, UAE-based healthcare services provider, set to debut in India today, will be met with cautious interest at best.
Aster DM’s IPO will open for subscription within a band of INR 180-190 per share (AED 10.281-10.852) at the Bombay Stock Exchange and the National Stock. The company wishes to sell 51.5 million shares and raise $152 million (AED559.8m) in a three day issue which ends on February 15.
BloombergQuint evaluates the company’s expected share price at the upper end of the price band is about 48 times its earnings, and over five times its book value. The company’s return on equity rate trends higher than other competitors in its field, but it falls behind in terms of returns on capital and assets.
Finance Blog MoneyControl, which also issues risks and concerns with new issues on Indian stock exchanges, aims to the company’s operations in an oil-dependent Middle East as a strategic risk to its expectations for future returns.
Aster also needs to raise its bed occupancy rates to carry forward generating hiking returns, something its financial statements show it has been having trouble with.
Aster DM operates in nine countries across the India, Middle East and the Philippines, and is growing to increase 10 more hospitals to its network of 19 hospitals. With the initial offering, it focuses to pay off debt with which it is financing expansion, buy medical equipment also support general corporate expenditure.
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