Summerset IPO closes fully subscribed

Shares in retirement village operator Summerset will begin trading on Tuesday – Melbourne Cup day – after its initial public offer closed fully subscribed, raising $123.6 million.

Summerset offered 88.3 million shares at $1.40 each – the bottom end of a range of starting prices.

The share float is the largest IPO in New Zealand for more than two years and represents the first of several new listings signaled later this year and early next.

Summerset could be followed by TradeMe, whose owner Fairfax is reported to be seeking up to $350 million for 30 to 35% of the online auction site.

Summerset said the offer attracted good support from a wide range of institutional and retail investors. Company staff and residents of Summerset also supported the IPO.

Australia’s Quadrant Private Equity will reduce its stake in Summerset from 97% to 56% with $50 million of new capital also being raised.

The shares will list on the NZSX under the ticker code SUM on November 1.

Summerset is forecasting pro forma net operating cashflows of $51.9 million and total investment properties of $632.6 million for the financial year ending 31 December 2012.

The company is the country’s third largest retirement village operator with 13 operational villages across the country providing services to 1700 residents.

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