ASX hopeful Regis Healthcare will seek to raise $410 million at between $3.20 to $3.85 a share when the institutional bookbuild gets under way on September 16.
The price range values Regis at 11 times to 12.5 times earnings on an enterprise value to earnings basis and a 4.2 per cent to 4.8 per cent dividend yield. Regis’s indicative market capitalisation is between $1 billion and $1.13 billion.
The aged care operator’s listing is the first big float after the results season. Photo: Greg Newington
The company’s management is in front of fund managers this week, seeking to shore up support for the float.
Regis is Australia’s third-largest aged care operator and is the first big float to test the market this side of the results season.
Much of the marketing compares Regis to recently listed rival Japara Healthcare, and seeks to justify why it should be worth more as a listed entity.
Regis is larger, with 4719 beds at its 45 sites across the country, and is running at a 20 per cent earnings before interest, tax, depreciation and amortisation margin, compared with Japara at 17 per cent.
Lead managers Macquarie, Morgans and Evans & Partners may upsize the raising and allow existing shareholders to take some cash off the table, should there be demand. The offer is also being pitched to United States-based investors, after two roadshows indicated demand offshore.
The institutional bookbuild is scheduled to close September 17.