Here’s why we think we will do exceptionally well, once we list. The management company that manages RH Bophelo also handles Razorite Healthcare and Rehabilitation Fund which is a R1.5 billion private equity fund, with a mandate to exclusively invest in healthcare infrastructure in South Africa, focusing on acute hospitals, sub-acute hospitals and primary healthcare facilities.
However, this Fund has a pipeline of potential projects that is more than double its fund size and is often presented with healthcare projects that do not fit into its mandate. This reality opens a window for RH Bophelo to raise funds and take advantage of the opportunity.
From that basis alone, RH Bophelo believes that the JSE Listing will have the following benefits:
- Providing investors with access to a highly sought after asset class associated with high growth and cash generative returns.
- Enables RH Bophelo to access investment funding in order to acquire its initial pipeline of asset,s and provides it with the initial and ongoing ability to raise capital in order to pursue and acquire or investment in the desired Viable Assets.
- Enables an attractive environment for risk-tolerant investors to promote the formation of capital.
- Provides RH Bophelo with a certain level of credibility at the point when potential vendors are approached. Not only can the vendors independently verify the identity of RH Bophelo, they are also able to gain confidence in the ability of RH Bophelo to perform financially.
- Increases profile visibility and deal flow opportunities.
- Provides a capital base for RH Bophelo and properly positions RH Bophelo for the changing nature of the healthcare industry in South Africa.
- Regulatory safeguards that protect investors.
- Incoming investors have the potential to make significant gains.
- To provide potential investors with an opportunity to participate directly in the equity of South African healthcare entities.
- RH Bophelo will be able to issue shares giving RH Bophelo additional flexibility when evaluating opportunities. Vendors may find it attractive to receive part of their purchase consideration in the form of equity securities in a listed vehicle, giving RH Bophelo a competitive advantage over other potential buyers that are unlisted; and
- Allows for the raising of capital from a wider pool of investors who have a mandate and actively seek investment opportunities in the listed environment.
The proceeds of the Private Placement will be used by RH Bophelo to fund the acquisition of Viable Assets.