Regis Aged Care is expected to launch an initial public offering within September to raise about $500 million, reporting by Data Room has found.
Pre-marketing research has valued the company between $1 billion and $1.2bn, at about 23 times of 2015 forward earnings, sources told Data Room. It is understood that Regis is looking to raise $500m in the IPO.
Regis is meeting fund managers right now to test the appetite for the offer, with sources expecting the IPO to be officially launched in two weeks.
A fund manager who is set to meet Regis management on Friday said there had to be compelling reasons to invest in the company at the proposed valuation. Japara Healthcare, the only pure-play aged care provider on the ASX, is currently trading at about 21 times forward earnings.
Founded in 1992 by Bryan Dorman and Ian Roberts, Regis has become one of Australia’s leading aged care providers with over 45 facilities and about 5,000 beds across the country. The two founders still own 97 per cent of the company, with the remaining stake held by the management.
Macquarie is the lead manager on the IPO, while brokers Morgans and Evans & Partners have also been appointed to sell the offer.