Oceania Healthcare launches IPO
IPO to raise $200 million and dual list on the NZX and ASX.
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Hawke’s Bay
Oceania Healthcare has launched an initial public offer to raise $200 million and dual list on the New Zealand and Australian stock exchanges.
New Zealand’s third-largest residential aged care provider and sixth largest retirement village operator is offering up to 263 million new ordinary shares, with an indicative price range of 76c to $1.04 a share.
This gives the company an indicative market capitalisation of $472 million to $571 million.
Oceania’s owner, Macquarie Infrastructure and Real Assets’ managed funds, is not selling any shares in the offer and its shareholding is escrowed for the prospectus forecast period.
Money raised through the offer will be put toward accelerating Oceania’s development pipeline and reducing debt.
Oceania has a heavier focus on aged care than Ryman Healthcare, Summerset or Metlifecare.
Its portfolio is weighted 73% to care beds, with the balance being retirement village units.
Once its brownfields development landbank is built out over the next eight years, two-thirds of the portfolio will comprise care beds and the remaining third retirement village units.
Oceania’s underlying earnings before interest, tax, depreciation and amortisation (ebitda) increased 59% from 2015 to 2016, from $29.5 million to $47 million, helped by a strong year in retirement village unit resales.
The prospectus shows underlying ebitda for 2017 is projected to be $44.3 million, 6% lower than 2016, which Mr Gasparich says is partly due to lower retirement village resale volumes and about 100 care beds being taken offline ahead of site redevelopments.
In 2018, underlying ebitda is expected to increase 40% on the year before, with developments at Meadowbank Village and Lady Allum in Milford being completed and sold.
Oceania is holding the bookbuild from April 11-12, with the broker offer opening on April 13 and closing on April 28.
Trading on the NZX and ASX is expected to start on May 5.
More to come.
Calida Smylie
Fri, 31 Mar 2017
Fri, 31 Mar 2017
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Oceania Healthcare launches IPO
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