HAMS Builds on Last Year's Capital Raise
Hospital for Advanced Medicine & Surgery Ltd. (HAMS) is one of Nepal's leading corporate private hospitals and operates in one of the country's most capital-intensive industries. Unlike many businesses, hospitals require continuous investment in land, buildings, medical equipment, technology, and highly specialized healthcare professionals. As a result, expansion often depends on a combination of bank financing and private equity.
Around a year ago, HAMS strengthened its capital base through a Pre-IPO/Private share issuance, raising approximately Rs. 350 million by issuing 1 million shares at Rs. 350 per share. According to publicly available information, the shares were subscribed by doctors, hospital employees, and institutional investors, including the Solti Group. The funds were allocated toward expanding hospital infrastructure and improving healthcare services.
The hospital has invested an estimated Rs. 3.5 billion into developing its operations. Despite this significant investment, HAMS reported an annual profit of around Rs. 190 million, representing a return of roughly 6%. These figures highlight the long-term nature of healthcare investments, where substantial capital commitments often generate comparatively modest financial returns.
A Capital-Intensive Industry
Nepal has only a limited number of large corporate private hospitals. Establishing and operating these institutions requires significant financial resources, with expansion frequently supported by bank loans. Before extending large loans, banks typically require independent credit assessments that evaluate a company's assets, liabilities, and financial strength. This process increases transparency for lenders and investors while providing greater insight into the financial position of corporate healthcare providers.
Growing Interest in Nepal's Private Market
The completion of HAMS' Private round demonstrates how established private companies in Nepal are increasingly using private capital to finance expansion before pursuing a future public listing. As Nepal's Private market continues to evolve, healthcare remains one of the sectors attracting investor attention due to its long-term growth potential and increasing demand for quality medical services.
For investors interested in Pre-IPO shares in Nepal, HAMS provides an example of how companies can utilize private capital to expand operations before entering the public market. As with any Private investment, investors should evaluate financial performance, business strategy, corporate governance, and regulatory developments before making investment decisions.
Healthcare and Long-Term Investment
Private hospitals today provide healthcare services to a significant share of Nepal's population and continue to play an important role in expanding access to specialized medical care. At the same time, continued improvements in government hospitals would strengthen Nepal's overall healthcare system and improve access to quality healthcare nationwide.
As Nepal's OTC market, Private market, and broader private capital ecosystem continue to mature, companies like HAMS illustrate how long-term investment can support business growth while creating future opportunities for investors seeking exposure to unlisted companies.