I think the market is struggling to value CDC personally. I believe a dual-listing would be the most efficient way, however, what's the point when there are three shareholders who each own 48%/48%/4%? I doubt anyone would want to sell-down considering it's eye-watering valuation increases every six months.
But I say this based off NXT and MAQ and the unprecedented growth they have both experienced, AusSuper for one saw this.
Additionally, I like how IFT have invested before the crowds with previous macro-trend style investments i.e. renewables and data centres. I feel like with healthcare, they are arriving at the party alongside everyone else. In my opinion, a more aggressive approach is needed here. Merge Qscans and Pacific Radiology and then purchase multiple privately owned radiology clinics. In South Brisbane, I drive around and there are two small clinics I see that are always full, privately owned I'd assume judging from the name and small footprint, but small quality bolt-on acquisitions nonetheless. Larger businesses are understanding that an aging population will mean big business in the years to come, coupled with low interest rates means hefty valuations for current M&A - not something I want IFT bidding into.
Lastly, I'd still like to see investments in more critical infrastructure in NZ, whether it be waste management or ports. But yes, I too believe it'll be a roadshow type approach. The liquidity still has people stumped, although that has improved as of late. I thought maybe a sole listing on the ASX would be better for liquidity purposes (larger market), but IFT and their investments form integral parts of New Zealand's economy, Kiwisaver accounts and reports in NZD etc so I believe that'll never happen. Liquidity doesn't bother me personally, but I was reading a Livewire article a fair while ago and it was all about lack of liquidity for the larger instos here in Aus, but a dual-listing doesn't bother me.
Cheers,
Dalto24
(20min delay)