Arvida completes $80 million IPO
18 December 2014
Arvida completes $80 million IPO
Shares of Arvida Group Limited (Arvida, the Company) today began trading on the NZX Main Board following a successful IPO that raised $80 million in new capital to underpin the growth of the new retirement and aged care group.
Strong demand for the shares from institutions in New Zealand, Australia and other eligible jurisdictions and the clients of participating NZX firms saw the shares priced at $0.95, at the top end of the indicative price range of $0.85 to $1.00.
Arvida Chairman Peter Wilson says the Company is delighted to have attracted the strong support of high quality shareholders including new and existing investors.
“Our new shareholders recognise that the foundation portfolio of 17 villages across New Zealand provides a strong base to meet the growing demand of retiring New Zealanders for high quality independent living along with the assurance that their needs will be catered for in later years. Our 1,000 dedicated staff and skilled management team are fully engaged in making Arvida a leader in the provision of retirement living and aged care services.”
Arvida has now settled the acquisition of the foundation villages and the proceeds of the Offer have primarily been used to partially repay debt, providing Arvida with capacity to operate, develop and enhance its portfolio, including through potential further acquisitions.
Arvida’s current dividend policy is to distribute 60-80% of underlying profit per annum, intended to be paid on a quarterly basis. The first dividend is scheduled to be payable for the quarter ending 31 March 2015 and total cash dividends anticipated to be declared in FY16 plus imputation credits are expected to deliver a gross dividend yield of 5.9% (assuming a dividend of 70% of underlying profit) on the Offer price.
The Company’s Chief Executive Officer Bill McDonald says that it will be life as usual for Arvida’s residents and staff and after a period of integration, the group will advance work on a pipeline of development projects attached to existing villages.
“The IPO provides the flexibility to undertake the development of more than 160 new units at existing villages and later consider earnings accretive acquisitions to expand the geographic spread of the group beyond our 17 foundation villages.”
NZX Limited Chief Executive Officer Tim Bennett says “Today’s Arvida listing, the 16th we’ve had on the NZX this year, marks the conclusion of a stellar year for NZX”.
“The initial public offer of Arvida further boosts the investment options available to investors in our capital markets, and its retirement industry focus adds to the other sectors represented in this year’s NZX listings, including technology, manufacturing, agriculture, energy, health and education businesses.”
Arvida’s shares trade with the code ARV on the NZX Main Board. Forsyth Barr was the Arranger for the IPO.
Arvida Group Limited (Arvida), is a retirement village group with an emphasis on providing a continuum of care from independent living through to high quality aged care services. Arvida has 17 villages across New Zealand comprising Glenbrae, Bay of Plenty; Molly Ryan, New Plymouth; Olive Tree, Palmerston North; Waikanae Lodge, Waikanae; Oakwoods and The Wood, Nelson; Ashwood, Blenheim; Ilam, The Maples, Mayfair, Park Lane, Rhodes on Cashmere, St Albans, St Allisa and Wendover, Christchurch; and Bainlea and Bainswood, Rangiora. Arvida’s shares trade on the NZX Main Board under the code ARV.