Aged care play Oceania Healthcare’s pitch to fundies – The Australian Financial Review

More than two-thirds of Oceania Healthcare's sites are on New Zealand's North Island.

Meet the aged care rollout story setting course for the listed market.

Macquarie-backed initial public offering candidate Oceania Healthcarehas told fund managers it has 1674 new residences in the pipeline with about 1000 already eitherconsented or under construction.

The New Zealand-basedcompany had $NZ47 million in proforma underlying EBITDA in the 2016 financial year, which was up from $NZ26.9 million in 2014 and $NZ29.6 million in 2015.

That represents 32 per cent average annual growth, and Oceania expects similar sorts of numbers into the medium term fuelled by the aforementioned development at sites including Auckland, Hamilton, Tauranga, Nelson and Christchurch.

Oceania said care beds were the biggest part of its portfolio, and would make up 47 per cent of its business under current development plans. Independent units is its biggest growth engine, and is expected to grow to 38 per cent of the portfolio.

That's Oceania's pitch, as it goes about meeting Australian fundies ahead of a planned listing.

Owner Macquarie Infrastructure and Real Assets has house broker Macquarie Capital on board to manage the offer, while Kiwi brokers Deutsche Craigs and First NZ Capital - affiliates of the local Deutsche Bank and Credit Suisse respectively - are also along for the ride.

Fundies expect the company to be back in front of them as early as next month. As always, whether the IPO floats or flops will depend on pricing.

Investors were quick to compare Oceania torivalsSummerset Group Holdings and Metlifecare, which are already on the ASX boards, and the NZX-listed Ryman Healthcare and Arvida Group.

While the five players operate in the same sector, their respective business mixes are quite different. Oceania has made its name in care beds, which is similar to Arvida, while Summerset Group and Metlifecare make their money from independent units. Rymanis split more evenly between the two sub-sectors.

Oceania is just the latest in a long line of Kiwi floats seeking to drum up support among the Australian institutional investment community.

Its run at the ASX boards comes after earlier attempts to attract a private equity or trade buyer for the 48-strong retirement facility portfolio.

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Aged care play Oceania Healthcare's pitch to fundies - The Australian Financial Review