regis ipo

macbankers at it again, this time in aged care, regis worth up to 1.2bn


Regis Healthcare worth up to $1.2b: Macquarie

PUBLISHED: 3 HOURS 32 MINUTES AGO | UPDATE: 0 HOUR 0 MINUTES AGO
EDITED BY SARAH THOMPSON, ANTHONY MACDONALD AND GRETCHEN FRIEMANN
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The initial public offering season is officially under way with investment bank Macquarie Capital starting marketing for Australia’s third-largest private residential aged care operator, Regis Healthcare.
Macquarie analysts released Regis Healthcare’s detailed pre-marketing report to fund manager clients on Monday morning.
The report valued Regis at $1.031 billion to $1.193 billion based on trading multiples of its peers and the value of its cash flows.
The analysts told clients that Regis was the country’s third-largest operator with 45 facilities and 4719 operational places at its sites across Australia.
Macquarie’s report said Regis was operating in a highly fragmented industry and Regis was well placed to boost its market share. It said Regis had $24,000 earnings per bed, which was well above the $9000 industry average.
Acquisitions have been a key part of Regis’ history. The company has been a busy acquirer, adding Northern Territory’s Tiwi Residential Care Centre to its portfolio only last month.
The investment bank’s analysts will brief fund managers over the coming week, before Regis management fronts up for the initial public offering roadshow.
Macquarie is sole lead manager on the IPO, while Morgans and Evans & Partners are co-managers.
Regis is expected to list in October should it find support among the investment community.
The aged care group’s founders are expected to retain at least a 50 per cent stake and remain on the company’s board. In November last year, Macquarie Group sold its 44 per cent stake in Regis back to its original founders Ian Roberts and Bryan Dorman.
The marketing campaign comes only days after the reporting season finished. Macquarie is also expected to start marketing garage doors and glass business ArcPac this week.
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