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Oceania Healthcare to list on NZX, ASX

NZ Newswire logoNZ Newswire 30/03/2017 Sophie Boot

Retirement village operator Oceania Healthcare is planning to raise $200 million in a much-anticipated initial public offering in order to cut its debt and potentially buy new development sites, and will list on the NZX and ASX.

In a statement, the company said it will issue up to 263.2 million new shares, with an indicative price range of 76 cents to $1.04 apiece, valuing the company at between $472 million and $571 million.

"Proceeds from this offer will assist Oceania Healthcare by providing additional financial flexibility to accelerate its substantial development programme through the reduction of debt, and also providing flexibility to acquire further suitable development sites as opportunities arise," the company said.

There has been talk of an Oceania IPO since 2014, when it was on track for an offer in early 2015, though that didn't eventuate and chief executive Earl Gasparich said the company would wait until at least 2017 to recapitalise.

Oceania is indirectly owned by Macquarie Group through Macquarie Infrastructure & Real Assets, which is not selling any shares into the offer.

The bookbuild will take place on April 11 and 12, and the company expects to start trading on the NZX and ASX on May 5, it said.

The company, which was formed through the merger of ElderCare and QualCare in 2008, runs 48 facilities in New Zealand, with 3950 care beds, suites and units.

It has 1674 new residences in the pipeline with about 1000 consented or under construction, mainly at its Lady Allum rest home site on Auckland's North Shore, as well as in Tauranga, Hamilton, Nelson and Christchurch.

Oceania's portfolio is currently weighted 73 per cent towards care beds, with the balance being retirement village units.

The company said underlying earnings before interest, tax, depreciation and amortisation had been $47 million in 2016, up 59 per cent from a year earlier.

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