PUBLISHED: 2 hours 44 MINUTES AGO | UPDATE: 2 hours 44 MINUTES AGO
Edited by Sarah Thompson, Anthony Macdonald and Gretchen Friemann
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Australian fund managers have moved on from the ABC Learning debacle and are back in love with the new fleet of childcare roll-ups, G8 Education and Affinity Education Group.
Now Commonwealth Bank of Australia’s affiliate, ASB, and investment bank Goldman Sachs are looking to take the roll-up model across the Tasman and convince Kiwi fund managers they too can get in on the gains.
ASB and Goldman Sachs are overseeing the roll-up of 70-odd New Zealand childcare centres into a company called Evolve Education.
Evolve is expected to seek a New Zealand listing before the end of the year in a deal that would value the new entity at up to $NZ250 million ($227 million).
Australian fund managers will also take a look at the initial public offering, having piled into raisings for G8 and Affinity in the past 12 months, and it’s possible Evolve may consider a dual-listing on the ASX.
It’s understood Brisbane’s Kern Group is also involved. Kern Group was lead adviser to Affinity Education at its $75.5 million IPO. Affinity is up 20 per cent since its December float.
Evolve’s float comes as fund managers study all stages of the education sector, with a number of vocational and training firms such as Lode-Ed, Evocca and Ashley Services Group also seeking listings.
It’s also the second education float in New Zealand this year, following that of Arowana International spin-off Intueri Education Group. The group is also up about 20 per cent since hitting the NZX and ASX boards in May.
