A new name has appeared on the stock exchange boards this morning – the second listing in as many days.
The aged care and retirement village operator Radius Care debuted as it set out plans to raise capital for future growth and expansion.
Radius’ listing price was 80 cents a share but no one was selling. Indicative bids were listed at more than $140 a share.
The company has 22 aged care facilities and two retirement villages, with a focus on acute and specialist care.
In its presentation to investors, the company said it had a long-term strategy to increase the number of retirement village units it offered.
Founder and managing director Brien Cree said that would not detract from its broader focus on care.
“That’s our core value and we will continue to be a care company, what we do want to do is expand faster and in order to do that we need access to capital so therefore the NZX listing is a great opportunity for us to start growing faster.
“Our [retirement] villages are boutique villages which support our care offering, it’s a little bit different to some of the other companies where they tend to provide to support their retirement villages, where the other way around.”
In its presentation to investors, the company expected its underlying profit for the year ending March would fall between $23 million and $23.7m, compared with $21.3m a year ago.
Excluding one-off accounting gains, earnings would be between $10.2 and $11m, which is about a third higher on last year’s result.
Radius staff were allocated a $1000 worth of shares if they had been part of the company for more than 10 years, were a facility manager or a member of the senior management team.
“We wanted a way to recognise the contribution that our staff have made to the company’s success,” Cree said.
“It effectively means some of our most loyal and impactful staff will have received, as part of the listing process, a stake in the ownership of Radius Care.”