Aged care group Japara Healthcare lodged its long-awaited prospectus to raise up to $450.4 million yesterday after adviser Macquarie Capital was swamped with about $1 billion of demand from institutions looking to take cornerstone positions.
The investment bank was sole lead manager and has now underwritten the raising, with the broker offer through CBA Equities and Morgans to come ahead of a listing on April 17.
Many investors in Japara’s property trust are expected to roll their holdings over into the new listed company. At least $250m is to be raised, with a final raise of about $350m tipped as about half the property trust investors exit. The deal values the company at $525m on a price-earnings ratio of about 19 times.
Japara plans to grow in the sector and hopes its earnings multiple expands in line with the likes of Ramsay Health Care, at about 28 times.