Telstra Health, a unit of Australia's largest telecommunications business Telstra Corp, bought 2 per cent of Orion Health Group in the healthcare management software developer's bookbuild last week in the lead up to its listing later this month.
The Melbourne-based telecommunications business spent $20 million buying 3.5 million shares at $5.70 a piece in last week's bookbuild, which valued the company at $915 million, Auckland-based Orion said in a statement.
Orion is selling 21.1 million new shares to raise $120 million in new capital, while chief executive and founder Ian McCrae will sell a further $5 million, or 880,000 shares, into the float. Existing shareholders are estimated to keep around 86.3 per cent of Orion after the float, with McCrae holding around 50 per cent.
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Orion will use the new funds to double the existing 40 research and development teams to accelerate its existing solutions and to undertake blue sky research on its big data analytics and predictive modelling software. The money will also go to improve implementation and delivery capability, and provide additional financial liquidity.