Oceania seeks $ 200m in IPO

Retirement village operator Oceania Healthcare is planning to raise $ 200 million in an initial public offering to cut its debt and potentially buy new development sites, and will list on the NZX and ASX.

The company said it would issue up to 263.2m new shares, with an indicative price range of 76c to $ 1.04 apiece, valuing the company at between $ 472m and $ 571m.

“Proceeds from this offer will assist Oceania Healthcare by providing additional financial flexibility to accelerate its substantial development programme through the reduction of debt, and also providing flexibility to acquire further suitable development sites as opportunities arise,” the company statement said.

Oceania i s indirectly owned by Macquarie Group through Macquarie Infrastructure & Real Assets, which is not selling any shares into the offer. The bookbuild will take place on April 11 and 12, and the company said it expected to start trading on the NZX and ASX on May 5.

The company, which was formed through the merger of ElderCare and QualCare in 2008, runs 48 facilities in New Zealand, with 3950 care beds, suites and units. It has 1674 new residences in the pipeline with about 1000 consented or under construction, mainly at its Lady Allum rest home site on Auckland’s North Shore, as well as in Tauranga, Hamilton, Nelson and Christchurch.