ANOTHER major fertility company, Monash IVF, is making a $428 million splash onto the share market, as the test-tube baby industry continues to grow.
Monash IVF is one Australia’s top three fertility specialists, with most of its clinics in Victoria, South Australia and the Northern Territory.
It is offering 74 per cent of its shares to brokers and institutional investors to raise $316 million, and expects to debut on the share market at the end of June.
At its offer price of $1.85 per share, Monash is valued at $427.5 million.
Research from IBISWorld shows the fertility industry generates $500 million in revenue each year, and is growing at 11 per cent annually as the median age of women giving birth continues to rise.
Another leading IVF provider, Virtus Health, made a $452 million debut on the share market 12 months ago, and its value has grown to $681 million.
Monash IVF made a profit of $18.3 million in the 2012/13 financial year, and is forecasting that to grow to $22 million this year.
Most of its earnings comes from fertility advice and services, while it also carries out genetic testing and provides ultrasounds.
Chief executive James Thiedeman said Monash plans to grow its market share in Australia and continue investing in best-in-class science, and expand its fledgling operations in Malaysia.