New Zealand’s sixth-largest retirement village, Oceania Healthcare, began trading on the NZX and ASX yesterday, following its $200 million initial public offering.
On opening, Oceania’s shares rose 3.8% from the 79c purchase price to 82c and closed the day at 80c.
While 58.5% of Oceania remains in private equity holding, Oceania issued 253.2 million new shares at 79c each, equating to 41.5% of the total shares in the company at listing.
That gives it an implied market capitalisation of $482.1 million and implied enterprise value of $NZ585.3 million. Oceania’s rest-homes and retirement villages are spread across the North Island, and there are some facilities in the Christchurch and Nelson-Marlborough regions.
Chairwoman and independent director Elizabeth Coutts said listing gave Oceania the ability to accelerate its "substantial development programme" with debt reduction and would also provide financial flexibility to acquire more suitable development sites when opportunities arose.
Craigs Investment Partners broker Peter McIntyre said there was "steady" trading on good volume. About 17 million shares changed hands by 1pm yesterday.
Given Oceania was more "heavily weighted" in its aged-care component than its various competitors, its long-term outlook was positive, Mr McIntyre said.
Oceania chief executive Earl Gasparich said, "Compared to our listed peers, our focus on aged care sets us apart. It means we provide a more ‘needs-based’ product offering compared to other retirement village developers."
Oceania is indirectly owned by Macquarie Group through Macquarie Infrastructure and Real Assets, which did not sell any shares into the offer.
The company, formed through the merger of ElderCare and QualCare in 2008, runs 49 facilities in New Zealand, with 3950 care beds, suites and units. It has 1700 new beds and units in the pipeline, more than half of which are 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.
- Additional reporting BusinessDesk
At a glance
• Formed 2005, business group since 2008.
• New Zealand’s third-largest residential aged-care provider and sixth-largest retirement village owner-operator.
• 49 locations, including 25 villages, 4000 residents.
• About 3000 care rooms; more than 200 are care suites.
• About 1000 independent living villas and apartments.
• Employs more than 3000 staff.
- Source: Oceania Healthcare
