Winton Land has today confirmed plans for an initial public offering to raise up to $350 million by listing on the NZX and ASX and it has a $200m cornerstone shareholder and $100m further commitments.
Chief executive Chris Meehan announced further details of a scheme, first announced as a plan a few weeks ago.
"Winton announces a commitment from Macquarie Asset Management, part of Macquarie Group, with one of its managed real estate vehicles committing to subscribe for $200m of shares as part of the offer," today's statement said.
Post-IPO, a Macquarie Asset Management rep will join Winton's board.
"Additional commitments for over $100m have also been received from high-net-worth investors. The balance will be raised from a chairman's list offer available to selected investors nominated by Winton," a statement said.
The company had lodged its product disclosure statement for listing on the main board of the NZX and with a foreign-exempt listing on the ASX.
Winton will issue up to 90m new shares, being up to 30.4 per cent of the total shares on issue immediately after the offer, it said.
The issue price is to be $3.88.
There will be up to 296.6 million shares on offer and an implied market capitalisation of up to $1.15 billion, today's statement said.
The chairman's list offer will open on December 9 and close on December 12.
Winton expects to list on the NZX and ASX on December 17.
Its current development pipeline includes 7442 residential lots and dwellings, apartment units and retirement village units from existing projects, with $703m of gross pre-sales secured by mid-November.
About 78 per cent of the company's forecast gross revenue for FY22F and FY23F periods is pre-sold, and 78 per cent of development costs for FY22F and FY23F are currently under contract, the statement said.
Meehan said: "We have a fortress balance sheet and are well-positioned to continue to build the business, using strong cash reserves to capitalise on the growth opportunities that are in front of us."
Winton operates with a conservative capital structure, using minimal debt and some of the equity raised will be used to repay a project finance debt facility relating to one of Winton's developments.
Part of the offer proceeds will be used to fund offer costs.
Land acquisition, consenting, development, project, the housing market and sales and Covid-19 disruption risks were cited in the PDS.
Winton's ability to achieve forecast sales was depending on the housing market, it said.
The company is also exposed to the impact of Covid disruption and Government measures to attempt to control that, the PDS said.
Meehan said he and his wife Michaela Meehan had founded Winton in 2009 and the business had established the Northbrook retirement living brand three years ago.
Winton is now 79 per cent owned by the Meehans' Korama, 13.9 per cent by Wanaka Partners LLC and 7.1 per cent by JWAJ. The other companies are controlled by long-time associates of the Meehans.
Those existing shareholders will not be selling any of their shares as part of the offer, the PDS said.
After the share offer, those existing shareholders will hold a combined shareholding of 71 per cent to 77.6 per cent of Winton Land.
Winton plans to build many new retirement villages throughout New Zealand.
The executive director will be Julian Cook, ex-chief executive of Summerset Group, the listed retirement business which is second only to Ryman Healthcare in New Zealand in terms of size.