Oceania Healthcare’s turn for pre-IPO reports – The Australian Financial Review

ASX-hopeful Oceania Healthcareexpects to generate $NZ33.5 million underlying earnings in 2017, increasing to $NZ51.4 million in the next financial year.

That strong growth is a key part of the pitch as Oceania's broker, Macquarie Capital, makes its pitch to potential investors on Tuesday morning.

Macquarie distributed chunky pre-marketing research reports overnight, which spend plenty of time talking about the New Zealand aged care sector and how the fourth biggest player Oceania stacks up to its listed peers.

"One of the key attractions of the aged care sector is its leverage to the aging population theme," Macquarie analyst Daniel Frost told clients.

"The economics of village development are extremely attractive: the entire cost of development is funded by the sale of occupation rights on the retirement units, which allows the owner's capital to be recycled into the next development."

Macquarie told clients that Oceania's net tangible assets were forecast to be $NZ417 million at the end of 2017, which would increase to $NZ480 million should goodwill be included.

Oceania is seeking to dual-list in Australia and New Zealand.The company is owned by Macquarie's MIRA and met fund managers as recently as a fortnight ago.

Oceania's pitch to potential investors is all about the development pipeline.

The company has plans to redevelop 1674 beds, according to Macquarie, which will see it upgrade older sites in prime locations.

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Oceania Healthcare's turn for pre-IPO reports - The Australian Financial Review