OnMarket Bidding Closed Healthia Ltd ASX: HLA

Fixed Priced IPOType of Offer
06 Aug 18Offer Open
13 Aug 18Pay By
$1.00Price
$26.8 million - Fully underwrittenSize of Offer
$2,000 Minimum Investment
CanaccordLead Manager
Healthia Ltd
42
2790

 

The Healthia IPO has closed early via OnMarket due to strong demand.  

OnMarket has a limited allocation. Bids over $5,000 may be scaled back more heavily. ​Duplicate bids under the same investment profile, investor name or residential address may be cancelled.​

 

Introduction

Healthia Limited (ASX: HLA) was formed to bring together well established allied health brands, which include the My FootDr Podiatry and Allsports Physiotherapy brands, with the aim to be one of Australia’s leading allied health companies. It’s business model is to operate and expand its network of allied health businesses throughout Australia, and to generate operational improvements and deliver benefits for all stakeholders.

Healthia currently operates 56 podiatry Clinics (the My FootDr Podiatry Clinics) and an orthotics laboratory (iOrthotics) and holds a 50% interest in an allied health supplies business (D.B.S. Medical).  As part of the IPO process, the company has agreed to acquire additional portfolios, and post completion of the Acquisitions, its Australia wide network will consist of:

  • 72 podiatry Clinics which will operate under the My FootDr brand,
  • 23 physiotherapy Clinics which will operate under the Allsports Physiotherapy brand, and
  • hand therapy Clinics which will operate under the Extend Rehabilitation brand.

Healthia forecast to generate revenues of $71.8m in FY2019, and Net Profit After Tax (NPAT) of $5.1 million. Future growth will be driven by a strategy of organic growth in existing clinic, and acquiring new clinics based on disciplined acquisition criteria.

The company is led by an experienced team, including Chairman Glen Richards who was the founding CEO of Greencross Limited.

Offer Overview

Healthia Limited is looking to raise $26.8 million via its IPO and on listing, the expected market capitalisation at IPO will be approximately $63.0 million.  The IPO has been fully underwritten by Canaccord Genuity (Australia) Limited.

The proceeds from the offer will be used to:

  • fund the acquisitions and costs associated with the acquisitions;
  • fund the existing shareholder sell-down
  • cover the costs of the offer; and
  • provide working capital.

What industry does Healthia operate in

Allied health is a term used to describe the broad range of health professionals who are not doctors, dentists or nurses, where health professionals aim to prevent, diagnose and treat a range of conditions and illnesses. Healthia predominately operates in the following allied health sectors:

  • podiatry services, and
  • physiotherapy services.

The Australian allied health industry remains highly fragmented with approximately 25,900 businesses in Australia. There are approximately 2,400 podiatry businesses and 5,900 physiotherapy businesses.

In addition to owning clinics, Healthia will consider owning and operating other allied health businesses that provide services to its patients and where there are opportunities to improve patient outcomes including through greater interdisciplinary cooperation and cross education and efficient delivery of care due to co-location of services. Furthermore, it will look to own and operate other vertically integrated businesses in addition to iOrthotics and D.B.S. Medical.

Key Features of business model

The Healthia business model is to operate and expand the Clinics and other allied health businesses in accordance with disciplined management criteria. The Group intends to achieve this by identifying, acquiring and integrating new clinics and organically growing its portfolio of clinics and other allied health businesses. 

Directors believe the Healthia model will benefit patients, staff and Shareholders. Healthia’s Board and Senior Management team aim to drive growth through the following five-tiered growth strategy:

  1. patient focused outcomes
  2. organic growth
  3. future accretive acquisitions
  4. vertically integrated businesses units, and
  5. new clinic openings.

The Group intends to acquire new clinics and it will assess opportunities on a case by case basis with reference to its existing network of Clinics, strategic objectives and the Group’s acquisition criteria.

Financials

Healthia’s pro forma historical financial performance and forecast consolidated statement of profit and loss is summarised in the table below.

Healthia is targeting a dividend policy of between 40% and 60% of NPATA payable to Shareholders, with the first dividend expected to be paid in October 2019.

Management and Board

Healthia is supported by a Board and Senior Management team who have experience and capability in successfully integrating businesses and implementing the systems necessary to facilitate and improve the management and performance of its clinics. The Board include:

  • Glen Richards (Chairman & Non-Executive Director) has over 20 years’ experience in professional service consolidations including being the founding CEO of Greencross Limited, a veterinary services provider. He is also the chairperson of ASX listed People Infrastructure Limited, and a director of a number of other enterprises.
  • Paul Wilson (Independent Non-Executive Director) has over 26 years’ retail industry experience including founding CEO of Mammoth Pet Holdings Pty Ltd (Pet Barn. He is also the chairperson of The Natural Grocery Company.
  • Lisa Dalton (Independent Non-Executive Director) is an experienced director, senior executive and company secretary with expertise in the healthcare, medical, utilities, manufacturing, childcare, energy, mining and construction sectors.
  • Darren Stewart (CEO - Podiatry), one of the founders of the My FootDr Podiatry Clinics, has substantial experience building a network of podiatry clinics and has overseen the growth of the My FootDr podiatry business.
  • Anthony (Tony) Ganter (CEO - Physiotherapy), one of the founders of the Allsports Physiotherapy Clinics, has substantial experience building a network of physiotherapy clinics and has overseen the growth of the Allsports Physiotherapy Clinics.
  • Wesley Coote (CFO and Company Secretary) is the former Chief Financial Officer and Company Secretary of Greencross Limited and has experience in aggregating and integrating professional services businesses.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 5 of the prospectus, Healthia Limited is subject to a range of risks, including but not limited to integration, acquisition risks, retention of clinicians and competition.

 

Section 734(6) disclosure: The issuer of the securities is Healthia Limited ACN 626 087 223. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

Exposure Period

OnMarket is accepting applications for the Healthia Ltd IPO during the Exposure Period.  Applications made prior to the completion of the Exposure Period may be withdrawn.  General applications received during the exposure period will not be conferred a preference over general applications received after the completion of the Exposure Period.  

If a replacement or supplementary prospectus is issued, this will be provided to you along with the opportunity to withdraw your application.

Allocation methodology

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $5,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.​

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Healthia Ltd ASX: HLA

Healthia Ltd
Well established network of physiotherapy and podiatry clinics throughout Australia
The Healthia Ltd IPO has closed via OnMarket

 

Healthia Limited (ASX: HLA) aims to be one of Australia’s leading allied health companies. It was formed to bring together well established brands, including the My FootDr Podiatry Clinics and Allsports Physiotherapy Clinics. Post IPO Healthia with have over 100 clinics, with future growth expected to come from both organic growth strategies and the acquisition of well-established clinics throughout Australia.

$1.00Price
$26.8 million - Fully underwrittenSize of Offer
06 Aug 18Offer Open
13 Aug 18Pay By