Date: 22/04/2004 20:58:00
Words: 292
Publication: Financial Review
Section: IPOs
Shares in Brisbane-based child care company Hutchison Child Care Services on Thursday nearly doubled in its first trades after listing on the Australian Stock Exchange.
Hutchison shares listed at $1.65, a 65 cent premium to the $1.00-a-share initial public offering, but quickly rose even higher to reach $1.95.
At 1055 AEST, Hutchison shares were at $1.90.
Paterson Ord Minnett adviser William Cleland said Hutchison on Thursday benefited from eight different parties becoming substantial shareholders.
"[Hutchison] has been pushed up simply because the stock was hard to get," Mr Cleland said.
"You have to have at least 5 per cent of the company to become a substantial shareholder. That takes up 40 per cent of the company."
He said it appeared the substantial shareholders were from the company's management rather than institutional investment houses.
"It's good that management is retaining a significant stake in the business," Mr Cleland said.
He said that child care was viewed as a growth sector.
Hutchison offered 10 million shares in its IPO to raise $10 million, representing a 17 per cent ownership of the company.
"The IPO is part of Hutchison's expansion plan, with the money raised from the offer to be used to acquire existing freehold or leased premises and build or renovate new and existing properties," Hutchison said in a statement.
The company operates 64 early learning centres in Queensland, NSW, Victoria and South Australia, and plans to expand to 82 centres by the end of December.
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