Orion Health confirms $120 million to $150 million IPO

Orion Health confirms $120 million to $150 million IPO

By Fiona Rotherham

Oct. 21 (BusinessDesk) - Orion Health Group, a global provider of healthcare software solutions, has confirmed its long-heralded initial public offer in New Zealand and Australia.

The company is looking to raise between $120 million and $150 million in the offer and an entity associated with chief executive Ian McCrae will sell up to $5 million of shares in the float.

The new capital will be used to accelerate the company’s research and development capacity for new opportunities in the management of patient healthcare, improve the implementation and delivery capability, and provide additional financial liquidity.

It is expected that a prospectus and investment statement will be available later this month with the shares to be quoted on the NZX main board and ASX in late November.

Deutsche Craigs and First NZ Capital have been appointed leader managers for the offer.

The float has been talked about for the past two years with analysts predicting strong investor demand. Former Fonterra Cooperative Group chief executive Andrew Ferrier was appointed chairman last month.

Orion Health was founded in 1993 by McCrae who remains the majority shareholder and chief executive. Its cloud-based products and solutions are used by clinicians in more than 30 counties for patient data exchange and to improve co-ordination of their care.

Revenue has grown to $153 million in the year ended March 31, 2014 and though it has been profitable in the past, it’s not currently while it reinvests most of its healthy cashflow back into expansion globally. Most of that has gone into new hires with total staff numbers now at 1,100 worldwide. It has achieved high growth rates ranging between 25 percent and 30 percent for many years and has a revised target of hitting $1 billion revenue by 2020.

(BusinessDesk)

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