IPO plan in big childcare roll-up

A Lollipops Educare in Napier. Evolve Education group is planning to raise around $135m to buy the company. Photo / Duncan Brown

Evolve Education Group, a planned roll-up of New Zealand childcare businesses, has confirmed it is considering an initial public offer that will fund the acquisition of a number of early childhood education companies including Lollipops Educare and Porse.

It's understood the company is preparing to list on both the NZX and Australia's ASX before Christmas and hopes to raise around $135 million through its IPO.

In a statement Evolve said a prospectus for the offer was expected to be registered by Friday.

"The intended use of the funds to be raised under the offer will be to acquire Lollipops Educare, Porse and other early childhood education businesses, and to pay the costs associated with those acquisitions and the offer," the company said.

Evolve said the offer would be available to New Zealand and Australian resident clients of brokers in those countries, as well as institutions in Australasia and further afield.

There won't be a general public offer, the company said.

A market source said there were understood to be around 85 childcare centres involved in the roll-up.

Forsyth Barr and Goldman Sachs are managing the offer.

Evolve's directors are Queensland-based Russell Daly and Gregory Kern, according to Companies Office records.

Intueri Education Group, which operates a number of New Zealand private education providers, listed on the NZX and ASX in May.

Intueri shares are trading at $2.75 this afternoon, 17 per cent above the $2.35 offer price.