Oceania prices IPO low, company expects to list May 5

Earl Gasparich, chief executive of Oceania Healthcare. Photo / Michael Craig

Retirement village and resthome operator, Oceania Healthcare, has priced its initial public offering (IPO) at 79 cents a share, near the bottom of an indicative range, after a "book build" this week.

The offer has raised $200 million which the company's owners, Macquarie Infrastructure and Real Assets' managed funds, plan to spend on developing the company and reducing debt. A book build is a process of capturing, generating and recording investor demand for an IPO.

The IPO represents 253.2 million shares, or 41.5 per cent of the company, which is expected to list on May 5.

At 79c a share, the offer gives the company an implied market capitalisation of $482.1 million.

Chairwoman and independent director, Elizabeth Coutts said the board was pleased with the investor response to the offer.

"The company has a strong track record and management team, as well as a brownfields development pipeline to unlock future growth," she said.

Chief executive Earl Gasparich said the book build had been oversubscribed with strong demand from New Zealand, Australian and international investors.

"Price and volume leadership were considered in the allocation process, enabling Oceania to establish a high quality register of domestic and international investors," Gasparich said.

The shares were allocated to institutional investors in New Zealand, Australia, and certain other international jurisdictions, to brokers on behalf of private clients in New Zealand, and to selected persons who participated in a priority offer.

Upon listing, Oceania will join Ryman Healthcare, Summerset and Metlifecare which are also listed on the NZX.

The indicative rang for the offer was 76c to $1.04.