Radius Care's retirement village Elloughton in Timaru. Photo / supplied
Radius Care's retirement village Elloughton in Timaru. Photo / supplied
Large privately-owned aged-care and retirement village businesses Radius Residential Care has listed 176 million ordinary shares on the NZX at 80 cents each, giving an implied market capitalisation of $141 million.
In a compliance-style listing, all shares are fully allocated or subscribed to existing owners, staff and others and the listing is purely so it can expand.
"No new securities will be offered to the public in conjunction with the listing," it said of the main board listing.
The company today said it had 1700 staff and they had been allocated a portion of shares.
"Staff who have served the company for 10 years, facility managers and members of the senior management team have each been gifted 1250 shares [each], equivalent to $1000," the business said referring to that 80c listing price.
An investor presentation out today explained that price and told of opportunities.
"The board has ascribed a listing price of 80c per share based on its view of the equity value of Radius Care," the presentation said.
"Radius Care provides unique exposure to a high acuity, specialised care provider that remains committed to and focused on delivering compassionate and outstanding clinical care outcomes."
Radius has 1714 aged care beds of which it owns only 178 but leases from third parties properties to accommodate the remaining 1536 beds in its geriatric or aged-care hospitals.
"Radius Care has grown significantly from Brien's [Cree's] acquisition of a single facility [Heatherlea] with 54 beds in 2003 to a national portfolio of 22 aged care facilities and two retirement villages and over 1700 beds/units today, through a combination of organic growth, development and acquisitions," the presentation said.
The presentation mentioned a "secure revenue stream" due to some geriatric care being Government funded, citing "Government-backed funding with increasing diversification through strong resident adoption of private accommodation supplements for premium room services".
Brien Cree of Radius. Photo / supplied
Government funding underpinned Radius Care's revenues, but the company had increased its non-state revenue in recent years.
Radius plans to develop new sites and cited greenfield as well as brownfield or existing development sites with expansion potential.
Cree, founder and chairman, has said the listing was to enable further growth and expansion.
"We've built a very solid track record of providing excellent aged care across New Zealand with a particular focus on high acuity and specialist care. In addition, we have also developed two boutique retirement villages."
Those two places are Elloughton Village in Timaru and Windsor Court in Ōhaupō in the Waikato.
"The development and villages space is one of the areas where we want to grow, however, we will remain a care-focused business. We have clear plans and targets in place for the next five years and beyond," Cree said.
Ryman Healthcare, Summerset Group, Arvida Group and Oceania Healthcare are large retirement and hospital-care businesses listed on the NZX.
