JAKARTA. PT Charlie Hospital Semarang Tbk (RSCH) plans to allocate most of the proceeds of the initial public offering (IPO) in Indonesia Stock Exchange (IDX) for hospital expansion.

In the initial prospectus, the management of RSCH said that approximately 48.13% of the IPO proceeds will be allocated to conclude the construction of Charlie Hospital in Demak, Central Java. Then, another 45.89% will be set aside for purchasing medical device, leaving the remaining to the working capital.

For the establishment of this Demak hospital, the company requires IDR 64 billion. However, prior to this, RSCH already spent IDR 31.15 billion. The construction of this hospital has reached 80% and is targeted to be completed by March 2024.

Then, regarding the medical device acquisition from IPO proceeds, the purchase will be used to complete the healthcare infrastructures of Charlie Hospital, Demak.  The management of RSCH admitted that up until now, there has been no assigned vendor on medical device procurement.

As mentioned by IDNFinancials before, RSCH will issue 530 million shares or 20% of the issued and paid-up capital in IPO. With the projected range of offering price from IDR 105 to IDR 125 per share, the company potentially earns up to IDR 55.65-66.25 billion of fresh funds at the end of this corporate action. (KR/ZH)