Carter rings in a so-so start for Arvida

All Black Dan Carter rings the bell on Arvida Group's listing with chairman Peter Wilson (centre) and director Michael Ambrose. Photo / Dean Purcell.

As Grant Adamson lay in hospital after a brain aneurism Michael Ambrose gave the late retirement village visionary a promise - one that was kept with the float of Arvida Group.

Shares in the Auckland-based company, a roll-up of 17 aged care facilities from the Bay of Plenty to Christchurch, made their debut on the NZX yesterday.

Ambrose, a director of Arvida, said the roll-up and initial public offering had been the vision of Adamson, a Christchurch private banker who played a key role in the development of this country's retirement village industry.

Adamson died after suffering a brain aneurism last year as work on the Arvida float began.

"When he was in hospital I made a bit of a commitment to him, he probably couldn't hear me, but I said I would do everything in my power to see his vision through," Ambrose said. "We're really looking forward to the start of the new Arvida and somewhere up there our good mate Grant's looking down on us with a big smile."

Arvida chief executive Bill McDonald talked up the aged care operator's long-term growth prospects at its sharemarket listing ceremony, saying the firm was poised to increase its customer base by 200 per cent over the next 20 years.

Shares issued in Arvida's IPO at 95c traded as high as 97c and as low as 93c yesterday before closing at the issue price last night, giving the business a market capitalisation of $215 million.

It was an underwhelming performance compared with the recent listings of software developer Orion Health and childcare provider Evolve Education Group, which closed up 10 per cent and 8 per cent after their respective floats.

Arvida - which counts All Blacks Dan Carter and Richie McCaw as investors - raised $80 million through the fully subscribed IPO, which will primarily be used to pay down debt.

The company operates 952 aged care beds and 812 retirement units, with 1800 residents and 1000 staff.

Arvida intends to grow through debt-funded acquisitions, which could begin next year, as well as the development of new facilities and the expansion of existing sites.

Carter was at exchange operator NZX's Auckland offices for the listing ceremony and rang the bell as trading in Arvida shares began.

He said he was introduced to the aged care sector by Adamson.

"Obviously today's a very special day for [Arvida] to become public," Carter said. "I guess it's just the start so it's exciting times ahead."

Arvida has forecast net profit of $10.6 million for its first full year.