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Oceania Healthcare up 3.8pc in NZX debut

NZ Newswire logoNZ Newswire 5/05/2017

Shares of residential aged care provider and retirement village operator Oceania Healthcare debuted at 82 cents, 3.8 per cent higher than the offer price of 79 cents in the NZX's first listing of the year.

Oceania Healthcare raised $200 million through an initial public offering last month and listed on Friday on the New Zealand and Australian stock exchanges under the ticker OCA.

It issued 253.2 million new shares under the offer, which equates to 41.5 per cent of the total shares in the company at listing.

At 82 cents per share it has an implied market capitalisation of $500.4 million.

"Oceania Healthcare offers investors a unique opportunity. Compared to our listed peers, our focus on aged care sets us apart,'' Chief Executive Earl Gasparich said in a statement.

''It means we provide a more 'needs-based' product offering compared to other retirement village developers."

Shares were allocated to institutions primarily in New Zealand and Australia, and to brokers on behalf of New Zealand retail clients.

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

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 1700 new beds and units in the pipeline with more than half 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.

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