Evolve Education confirms IPO, to raise up to $130 million

Evolve Education confirms IPO, to raise up to $130 million

By Fiona Rotherham

Nov. 10 (BusinessDesk) - Evolve Education Group, which is looking to buy several childcare businesses, has confirmed a planned an initial public offer in a dual listing on the NZX and ASX to fund a series of acquisitions in early childhood education.

The amount of money being sought has not yet been released but it’s understood to be around $130 million. A prospectus will be registered for the offer on Thursday. The group said in a statement today that the offer, understood to be for around 75 percent of the rolled up businesses, would be available to New Zealand and Australian clients of local brokers in both countries who get an allocation from Evolve along with institutional investors in both countries and beyond. There will be no general public offer.

Evolve Education was set up in May by Greg Kern and Russell Daly of Queensland-based Kern Group and has agreed to acquire several New Zealand childcare businesses, including Lollipops Educare, the in-home childcare Porse Group, Wellington-based I-Kids and Christchurch-based Artemis Learning, and others.

The funds raised will be used to acquire the early childhood education business and to pay the costs associated with the acquisitions and offer.

Evolve follows the successful float of Australia’s Affinity Education Group which listed on the ASX in December 2013, raising A$75 million to buy 57 childcare centres and to list.

AFE listed at A$1 per share and is now trading at A$1.25 despite reporting a half-year loss of A$5 million compared to a A$2.6 million forecast profit in its prospectus.

Evolve’s shareholders include Kern Group holding one third, Affinity director Stuart James holding another third with the final third held indirectly by another Affinity director Gabriel Giufre through interests associated with her husband, Chris.

Porse managing director Jenny Yule said in August this would be a chance for New Zealand mums and dads to be invested in a movement in early childhood education that “impacts positive social change”.

(BusinessDesk)

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