Summerset sets IPO price
Summerset chairman Rob Campbell said the response from New Zealand and international institutions and retail brokers had been “extremely positive.”
Retirement village operator Summerset will offer shares in the company at $1.40 each – the lower end of a range of starting prices.
Summerset said 88.3 million shares will be offered to the public, raising $123.6 million and giving the company an initial market capitalisation of $300.7 million.
The price was set following a bookbuild to institutional investors and NZX firms. The indicative price range had been set at $1.40 to $1.60.
Australia’s Quadrant Private Equity will reduce its stake in Summerset from 97% to 56% with $50 million of new capital also being raised.
Summerset chairman Rob Campbell said the response from New Zealand and international institutions and retail brokers had been “extremely positive.”
"It is pleasing to see strong market endorsement of the compelling sector fundamentals and Summerset's leading position within it, notwithstanding global market conditions," chairman Rob Campbell said in a statement.
The retail offer will open on October 10 with an NZX listing scheduled for November 1.
Craigs Investment Partners, Deutsche Bank and First NZ Capital are joint book-runners, joint lead managers and joint organising participants for the initial public offering.
Forsyth Barr was also appointed a joint lead manager.
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.
Quadrant bought its 97% stake from AMP Capital in two tranches in 2009 and 2010 for approximately $114 million.
Duncan Bridgeman
Fri, 07 Oct 2011
Fri, 07 Oct 2011
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Summerset sets IPO price
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