Arvida, the retirement village operator formerly known as Hercules, has issued a prospectus for an initial public offer to raise $80 million for a planned mega merger of 17 privately-owned retirement homes.
The prospectus, lodged with the Companies Office today ahead of a company briefing tomorrow, said the shares will be priced in a range of 85 cents to $1 apiece.
The final price for the shares will be set through a bookbuild this week and listing on the NZX is expected on Dec. 18. The maximum number of new shares on offer will be between 80 million to 91.4 million, depending on the final price.
All Blacks Richie McCaw and Dan Carter, who held shares in Christchurch's Park Lane retirement village, are among existing investors expected to hold between 58.9 percent and 62.7 percent of the total shares on completion of the offer.
The current owners will be exchanging over 90 percent of their current investment for shares in Arvida and these will be subject to escrow arrangements until May 31, 2016.
Arvida's indicative market capitalisation is between $199.8 million and $221.4 million while the aggregate of CBRE market valuations of the portfolio of resthomes is about $227 million. The current occupancy level is 94 per cent.