Ramsay Health Care will try and raise $1.4 billion to boost its balance sheet after elective surgery stopped in many countries due to the coronavirus pandemic.
Ramsay on Wednesday said it aims to raise $1.2 billion through an underwritten institutional placement and $200 million through a share purchase plan.
About 21.4 million new shares will be issued, priced at $56 each.
This is a 12.9 per cent discount on the last trading price of $64.29 from Tuesday.
Shares in the private hospital operator were put in a trading halt on Wednesday before the announcement.
Managing director Craig McNally said the equity raising would increase the firm’s financial flexibility.
Ramsay has suspended ordinary share dividend payments.
The business operates in 11 countries and has made its hospitals available to treat coronavirus patients.
In Australia, some elective surgery is due to resume from Monday.
A number of companies listed on the share market have tried raising capital to boost liquidity during the coronavirus pandemic.
Cochlear, QBE, Webjet, Flight Centre, Oil Search, Reece, Kathmandu and oOh!media have tried similar moves in recent weeks.