Macquarie's Oceania Healthcare's initial public offering has been priced at at NZ79¢ a share, giving the company an enterprise value of $NZ585.3 million.
"The bookbuild was oversubscribed with strong demand from New Zealand, Australian and international investors," Oceania chief executive Earl Gasparich said.
Oceania, which is New Zealand's third largest residential aged care provider and the sixth biggest operator of retirement villages, had been seeking to to $NZ273 million ($250 million) via a dual listing on both sides of the Tasman. The indicative price range was between $NZ0.76 and $NZ1.04.
Gasparich told The Australian Financial Review earlier this month that the Kiwi company would be spared from the negativity surrounding Australian counterparts because funding models are totally different.
"The regulatory environment is very much an opportunity on the upside, not on the downside," Gasparich said, referring to the much better prospects in New Zealand.
"It's a different funding model."
Oceania forecasts in its prospectus that revenues for the 12 months ending May 31, 2017 will reach $NZ210.9 million, rising to $NZ215.7 million in the following year. Net profit after tax is expected to be $NZ25.3 million in 2016-17, climbing to $NZ53.1 million in the 12 months ended May 31, 2018.
The existing owner, funds run by Macquarie Infrastructure and Real Assets, has agreed not to sell any of its holdings under escrow arrangements which run until July 2018.
Oceania aims to start trading on the Australian and New Zealand stock exchanges on May 5.
