- HealthCo, a HomeCO (HMC) offshoot, sees strong demand and once again expands its initial public offering (IPO), this time by $50 million
- HCW Funds Management Limited in its capacity as responsible entity for the budding ASX-lister today lodged a product disclosure statement
- Following the IPO, HealthCo Healthcare and Wellness REIT will have a net cash position and more than $300 million in capacity for accretive acquisitions
- Shares in Home Consortium were down 0.5 per cent, rounding off the day of trading at $5.96 per share
Interest for HomeCo (HMC) spinoff HealthCo has been so strong that its initial public offering (IPO) has been increased again, this time by $50 million.
After HomeCo revealed plans to raise $500 million just a few weeks ago, David Di Pilla’s HealthCo pre-IPO presentation last week increased the cash to be raised by $100 million. Another $500 million has been set aside for an unlisted health and wellness fund.
HCW Funds Management Limited in its capacity as responsible entity for the HealthCo Healthcare and Wellness REIT today lodged a product disclosure statement with the Australian Securities and Investment Commission in relation to the IPO.
Because of the high level of investor interest, the offering was increased by $50 million to $650 million, bolstering HealthCo Healthcare and Wellness REIT’s balance sheet even further.
Following the IPO, HealthCo Healthcare and Wellness REIT will have a net cash position and more than $300 million in capacity for accretive acquisitions and developments, HMC said.
Following pledges from Home Consortium and a number of domestic and international institutional investors, as well as broker firm commitments from a syndicate of joint lead managers and retail co-managers to the IPO, the underwriting agreement was signed.
Home Consortium managing director and CEO David Di Pilla said they are delighted with the high level of interest, with the raising strongly oversubscribed.
“The proposed ASX listing of HealthCo Healthcare and Wellness REIT in early September marks another significant milestone for our organisation and builds on the success of HomeCo and HomeCo Daily Needs REIT which have both outperformed the S&P/ASX 300 A-REIT index since listing,” he said.
“HomeCo is now well positioned to accelerate its growth and scale its capital light funds management model.”
The chair of HealthCo Healthcare and Wellness REIT Joseph Carrozzi said they are extremely enthusiastic around the future prospects of the REIT.
“The HealthCo Healthcare and Wellness REIT is uniquely positioned to provide exposure to a diversified portfolio of assets underpinned by attractive healthcare sector megatrends,” he said.
“We will aim to deliver stable and growing distributions, long-term capital growth and positive environmental and social impact.”
If HomeCo raises $650 million, it will be the second-largest IPO of the year, trailing only PEXA, and the third listing worth $500 million or more in the previous three years.
Shares in Home Consortium were down 0.5 per cent, rounding off the day of trading at $5.96 per share.