Healthscope share sale raises A$2.2 bn
25 July 2014
Australia's second-largest private hospital operator Healthscope Ltd has raised A$2.2 billion through an initial public offering (IPO), the biggest float in 4 years to hit the Australian Securities Exchange (ASX), after the A$4.6-billion IPO of rail freight company QR National, now known as Aurizon, in 2010.
The company has confirmed the final offer price of A$2.10 a share, which is close to the upper end of the price band of A$1.79-2.29 and represents 22 times forecast forward earnings.
''The offer's success was driven by strong support from key cornerstone investors, other domestic and offshore institutional investors and significant demand from Australian retail investors,'' Healthscope chair Paula Dwyer said in the statement.
The company was bought out in 2010 by global private equity firms TPG and the Carlyle Group for A$2.7 billion in 2010 which lead to its delisting from ASX.
TPG and Carlyle have retained a 38-per cent stake in the newly listed company.
It is believed that cornerstone investors including Perpetual, Blackrock, AMP Capital and Malaysia's employees provident fund, and local fund managers accounted for about $1.35 billion, while retail investors purchased about $750 million worth of shares. Holders of listed debt instrument Healthscope Notes bought the remaining $164 million.
''A strong platform is in place to support Healthscope as it continues to deliver on operational initiatives and enters an exciting growth phase. Healthscope's strategies are supported by strong and attractive fundamentals including Australia's growing and ageing population,'' Dwyer said.
''The future looks very bright for Healthscope, with our key management committed to the business and strategies, ensuring that the company's great work continues following the offer,'' she added.
Melbourne-based Healthscope, founded in 1985, is an integrated health services provider. It operates 40 hospitals 4 rehabilitation facilities and 60 medical centres across Australia.
Healthscope's pathology business has major presence in Australia, New Zealand, Singapore and Malaysia. It also provides veterinary pathological services in Australia and New Zealand.
Following the IPO, Healthscope will have a market capitalisation of over A$3.6 billion. Trading on the scrip will begin on 28 July.
UBS and Macquarie acted as the global co-ordinators of the deal, while CIMB, Credit Suisse, Goldman Sachs and Bank of America Merrill Lynch were joint lead managers for the float.