Shares of Romanian health network MedLife jump 6% after capital increase announcement

The shares of Romanian private medical services provider MedLife (BSE: M) jumped by 6% on Monday, July 3, after the company announced its plan to carry out a capital share increase worth almost RON 100 mln (EUR 20 mln).

The company will not try to raise new money from investors but will incorporate share premiums and reserves and issue new shares that will be distributed free of charge to the existing shareholders. The shareholders will get three new shares for each share held at the registration date (September 4, 2023).

Traditionally, similar operations carried out by other companies listed on the Bucharest Stock Exchange have been positively received by the investors, although they don’t change the company’s fundamentals.

MedLife carried out another share capital increase in 2021 when its shares recorded the third-best performance on the Bucharest Stock Exchange and the company more than doubled its market capitalization (+113%).

In the last 12 months, MedLife’s shares are down 5%, compared with a 1.3% gain for the BET index.

MedLife currently has a market capitalization of RON 2.35 billion (EUR 476 mln). The company’s biggest shareholders are its founders – Mihail Marcu, Mihaela Cristescu and Nicolae Marcu – who hold 39.4% of the company’s shares. The NN pillar II pension fund holds 13.2% of the company.

(Photo source: the company)