KPJ Healthcare in $312m expansion drive

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Malaysia’s largest private healthcare provider KPJ Healthcare Bhd is looking at the possibility of issuing Islamic debt papers and a rights issue to help finance the development of 10 hospitals worth 1 billion ringgit ($312 million), according to The Edge.

With a cash balance of about 284.4 million ringgit and a low net gearing of about 0.5 times as at June 30, KPJ is looking to raise the funds through a rights issue and sukuk.

KPJ managing director Amiruddin Abdul Satar said that the plans are still “at a preliminary stage”.

The new hospitals will be constructed over the next 5 years and will add to the company’s existing 23 hospitals nationwide. Around 1,500 hospital beds will be added to the current 3,000.