Oceania Healthcare lists - small premium quickly fades

Friday 5th May 2017

Shares of residential aged care provider and retirement village operator Oceania Healthcare debuted at 82 cents, 3.8 percent higher than the offer price of 79 cents in the NZX's first listing of the year. As the morning progressed the price soon fell to 80 cents however.

Oceania Healthcare raised $200 million through an initial public offering last month and listed today on the New Zealand and Australian stock exchanges under the ticker OCA.

It issued 253.2 million new shares under the offer, which equates to 41.5 percent of the total shares in the company at listing. At 82 cents per share it has an implied market capitalisation of $500.4 million.

"Oceania Healthcare offers investors a unique opportunity. 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," chief executive Earl Gasparich said in a statement.

Shares were allocated to institutions primarily in New Zealand and Australia, and to brokers on behalf of New Zealand retail clients. Oceania is indirectly owned by Macquarie Group through Macquarie Infrastructure & Real Assets, which did not sell any shares into the offer.

The company, which was formed through the merger of ElderCare and QualCare in 2008, runs 48 facilities in New Zealand, with 3,950 care beds, suites and units. It has 1,700 new beds and units in the pipeline with more than half 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.

(BusinessDesk)

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