Biggest Australian IPO in 4 Years as Healthscope Could Raises $2.12 Billion
By Vittorio Hernandez | July 25, 2014 8:40 AM EST
The planned initial public offering (IPO) of Healthscope is expected to raise for the second-largest hospital operator in Australia $2.12 billion with private equity giants TPG Capital Management and Carlyle Group reportedly pricing the shares at $1.98, the upper end of the target range, Reuters reported.
Patients sit together outside a hospital after they were evacuated following an earthquake in Acapulco, in Guerrero state, April 18, 2014. The powerful earthquake struck Mexico on Friday, shaking buildings in the capital and sending people running out into the street, although there were no early reports of major damage. The magnitude 7.2 quake was centered in the southwestern state of Guerrero, close to the Pacific beach resort of Acapulco, the U.S. Geological Survey (USGS) said. REUTERS/Jesus Solano
That would make it the country's biggest IPO in four years after the $4 billion listing in 2010 at the ASX of the rail freight company Aurizon, also known before as QR National.
TPG and Carlyle would keep its 38 per cent stake in Healthscope, almost the upper end of the 25 to 40 per cent range stated in the IPO prospectus, while at least half of the remaining $1.7 billion would be available for cornerstone investors and $800 million for retail investors.
Commenting on the pricing of the shares launch, Platypus Chief Investment Officer Don Williams said, "It's a good space in that the earnings are defensive and there is growth. Healthscope does have very realistic, long duration growth options. It should be able to generate earnings per share (growth rate) of double digits or close to double digits for an extended period."
The IPO price is almost 22 times the 2015 forecast earnings of Healthscope, which ahead of the llsting sold its Brisbane Water Private Hospital in Woy Woy for $16.2 million to the Australian Unity Healthcare Property, the biggest hospital operator among unlisted ones. The deal comes with an initial 22.5 years of lease to the new operator, Healthe Care.
Chris Smith, head of healthcare and retirement fund of Australian Unity, said, "If Healthscope decides to put something to the market, we would certainly review those opportunities."
To contact the editor, e-mail:
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Kendall Jenner Could Be Next Victoria's Secret Angel [PHOTOS]
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
Join the Conversation
- iOS 8 Release Date Of Sept 17 Has Arrived: Update Begins At 10AM Pacific Time, Upgrade Your iDevices With iOS 7.1.2 First To Install iOS 8
- Why Samsung Galaxy S5 Is Not The Best Smartphone To Purchase Now? If You Still Want To, Wait For A Month To Get It Cheap
- Apple iPad Air 2, iPad Mini 3 October Release Date Roundup: Freshly Leaked Protective Case Debuts Unique Vent Alongside Camera
- Canadian IS Jihadist Wants to ‘Play Soccer’ with Heads of US Decapitated Soldiers
- Google Nexus 6 Release Date on Q4 2014 Confirmed by T-Mobile Featuring Wi-Fi Calling
- Warning to U.S. – ISIS Has Shot Down a Syrian Regime Fighter Jet
- Spice Dream Uno vs Xiaomi Redmi 1S: Android One Smartphone to Challenge The Existing Budget Friendly Smartphone