KWE Beteiligungen AG-invested TNH hospital seeks $6.2 mln through public offering

TNH Hospital Group JSC, a private hospital chain based in Vietnam’s northern province of Thai Nguyen, plans to raise VND152 billion ($6.2 million) through a public offering to repay loans to its executives and banks.

The firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as TNH, is about to issue 15.2 million shares at a price of VND10,000 ($0.4) apiece. TNH shares closed Friday at VND22,800 ($0.93) apiece.

Of the proceeds, VND92 billion ($3.75 million) will be used to repay loans to TNH’s chairman Hoang Tuyen; board member Nguyen Van Thuy; and former board member Nguyen Xuan Don. The remainder will be used to repay loans to BIDV bank and Military Bank, as well as to increase working capital.

The VND92 billion ($3.75 million) loan was secured by TNH in August 2022, with a 12-month term and an interest rate of 5.45% per year, to liquidate bonds issued in 2020. The firm has requested an extension of this loan three times, with the most recent extension granted until March 31, 2025.

TNH Hospital Group now owns Yen Binh Thai Nguyen General Hospital and Thai Nguyen General Hospital. It aims to expand into neighboring localities, such as Bac Giang, Lang Son, and Hanoi.

It broke ground on TNH Viet Yen Hostpial in Bac Giang province in February 2023. This facility is expected to be operational in the third quarter of this year.

The firm started work on TNH Lang Son Hospital early this year. It will invest in obstetrics, ophthalmology, and pediatrics hospitals while planning a hospital in Hanoi.

TNH targets to have 10 hospitals with the number of beds set to reach 2,000-2,500 by 2030, from the current 600.

Last month, TNH Hospital Group got approval from the State Securities Commission to increase its foreign ownership limit (FOL) from 49% to 70%.

At present, TNH is 6.67% held by Hoang Tuyen, 10.51% by Switzerland-based KWE Beteiligungen AG, 6.35% by Luxembourg’s SICAV-SIF-Asia Top Picks, 5.19% by Singapore’s Blooming Earth Pte. Ltd, and 6.41% by Endurance Capital Vietnam I Limited and SICAV-RAIF.

In the first half of this year, the firm posted VND53.4 billion ($2.18 million) in net profit, down 14% year-on-year.