In a much-anticipated move, retirement giant Oceania Healthcare has announced it will list on the NZX and ASX, raising $200 million through an initial public offering.
The company says it is New Zealand's third-largest residential aged care provider and sixth-largest retirement village operator. Popular stocks Ryman Healthcare and Metlifecare are bigger than Oceania here.
"Oceania Healthcare has today registered a product disclosure statement to raise $200 million through an initial public offering of ordinary shares in Oceania Healthcare and to seek a listing on the NZX main board and ASX," the company said.
"The initial public offering comprises the offer of up to 263.2 million new ordinary shares. Oceania Healthcare has set an indicative price range of $0.76 to $1.04 per share offered, equivalent to an indicative market capitalisation of $472 million to $571 million for the company.
"Funds managed by Macquarie Infrastructure and Real Assets are the indirect substantial owners of Oceania Healthcare and are not selling any shares into the offer.
"The shareholdings of the MIRA-managed funds are subject to customary escrow arrangements for the full duration of the forecast period contained in the product disclosure statement.
"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.
Auckland-based chief executive Earl Gasparich said: "The key differentiator of Oceania Healthcare compared to its listed peers is its focus on aged care. With emphasis on care, Oceania Healthcare has more of a 'needs-based' product offering compared to other lifestyle retirement village developers. One of the main benefits of care is the stability of cashflow. It's largely government funded, with underlying growth in demand as the population ages."
The company said its portfolio was 73 per cent care beds and the rest 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," the company said.
Indicative key dates
• Prospectus registered: March 31
• Broker firm bids due: April 10
• Bookbuild: April 11-12
• Broker Firm offer opens: April 13
• Priority offer opens: April 13
• Priority offer closes: April 21
• Broker firm offer closes: April 28
• Expected commencement of trading on NZX and ASX: May 5