Oceania Healthcare is aiming to raise $200 million in a share float on the New Zealand and Australian stockmarkets. <\/p>\n
Photo: 123RF <\/p>\n
New Zealand's third largest rest home operator - which is owned by funds managed by Australia's Macquarie Group - is offering up to 263.2 million new shares for between 76c and $1.04 each. <\/p>\n
That would value Oceania Healthcare between $472m and $571m. <\/p>\n
The proceeds from the float would be used to pay down debt and give the company flexibility to buy more development sites. <\/p>\n
Oceania chief executive Earl Gasparich said the company's focus on government-funded aged care gave it a stable cashflow in a sector with growing demand. <\/p>\n
While 73 percent of its portfolio was weighted towards care beds, that was expected to fall to two-thirds, once Oceania's current development sites were built-out, over the next eight years. <\/p>\n
The company's underlying profit rose 59 percent last year to $47m, compared with $29.5m in 2015. <\/p>\n
That profit was expected to fall by 6 percent this year to $44.3m, as resale volumes were expected to fall, while 100 care-beds were taken out of service, ahead of some redevelopment. <\/p>\n
However, the company expected underlying profit growth to bounce back next year, with a forecast 40 percent increase, as it completed a couple of development projects. <\/p>\n
The share offer opens on 13 April, with listings on the NZX and ASX scheduled for 5 May. <\/p>\n
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Oceania Healthcare out to raise $200m in a share float - Radio New Zealand<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Oceania Healthcare is aiming to raise $200 million in a share float on the New Zealand and Australian stockmarkets. Photo: 123RF New Zealand's third largest rest home operator - which is owned by funds managed by Australia's Macquarie Group - is offering up to 263.2 million new shares for between 76c and $1.04 each. That would value Oceania Healthcare between $472m and $571m Continue reading