Orion Health

[dingoNZ]

I wonder how many shares they are issuing & if any existing shareholders are selling down???

If this is the case they demand will be HUGE on the $120m, it will be massively oversubscribed. I imagine instos will be getting first dibs too, likely Milford first since they already have a finger in the pie

[Harvey Specter]

I wonder how many shares they are issuing & if any existing shareholders are selling down???

I'd be surprised if Ian didn't take at least some money off the table as having a very large shareholder restricts liquidity plus I am not sure what his salary is but he deserves to have a bit of fun after building such a large company. It would be a very bad look if he sold down post IPO so the IPO would be the best time to do it.

Having said that, he is already down to 58% so he might not want to be diluted too low.

[kiora]

More likely they subscribed in last capital raising rather than this one??? If they support this as well it would be a big tick for Orion ?

If this is the case they demand will be HUGE on the $120m, it will be massively oversubscribed. I imagine instos will be getting first dibs too, likely Milford first since they already have a finger in the pie

[GoldenStag]

I'd be surprised if Ian didn't take at least some money off the table as having a very large shareholder restricts liquidity plus I am not sure what his salary is but he deserves to have a bit of fun after building such a large company. It would be a very bad look if he sold down post IPO so the IPO would be the best time to do it.

Having said that, he is already down to 58% so he might not want to be diluted too low.

I'd like to speculate that he should dilute down to 35%. If he is over 50% it spooks the instos because they are beholden to his voting rights and don't have sell down liquidity, and if it is too small % it makes everyone suspicious of the motives for the float. A 35% is big skin in the game, and plenty of cash taken out to have fun.

That said, I don't work for FNZC, so won't really get the chance to advise him on what to do.

[sb9]

Things have gone bit quieter on this one, anyone has more to add to the proposed IPO coming up later...

[Harvey Specter]

Things have gone bit quieter on this one, anyone has more to add to the proposed IPO coming up later...

Refer post 17: http://www.sharetrader.co.nz/showthr...l=1#post510217

Once that goes ahead as planned, I assume it will be all on like Donkey Kong!

[percy]

I have just rung my broker at Craigs.No details for me just yet,not far away.

[GoldenStag]

Refer post 17: http://www.sharetrader.co.nz/showthr...l=1#post510217

Once that goes ahead as planned, I assume it will be all on like Donkey Kong!

Any outcome/news from said AGM?

[Hawkeye]

21 October 2014
PROPOSED IPO OF ORION HEALTH GROUP LIMITED
Orion Health Group Limited (“Orion Health”), a global provider of healthcare software solutions, is considering an initial public offer of ordinary shares to clients of retail brokers in New Zealand and institutional investors.
Orion Health is looking to raise between $120 and $150 million in the offer and an entity associated with CEO Ian McCrae are looking to sell up to $5 million of shares in the offer. The new capital raised would be used by Orion Health to:
(a) Accelerate its Research and Development capacity for new opportunities while maintaining its investment in its long established global business.
(b) Improve its implementation and delivery capability for its growing customer base.
(c) Provide additional financial liquidity.
It is expected that a prospectus and investment statement will be available in late October with the shares to be quoted on the NZX Main Board and ASX in late November.
No money is currently being sought and no applications for shares will be accepted or money received unless the subscriber has received an investment statement. Indications of interest will not involve an obligation or commitment of any kind.
Orion Health has applied to NZX Limited for permission to list and to quote Orion Health’s ordinary shares on the NZX Main Board. Quotation is subject to approval by NZX and NZX accepts no responsibility for any statement made in this announcement. The NZX Main Board is a registered market operated by NZX Limited, a registered exchange under the Securities Markets Act 1988. Orion Health intends to apply to ASX Limited for permission to quote Orion Health’s ordinary shares on the ASX. Quotation is subject to approval by ASX and ASX accepts no responsibility for any statement made in this announcement.

[sb9]

From NBR paywall, if anyone is keen for more details:

UPDATED 10AM: Orion Health Group, a global provider of healthcare software solutions, has confirmed it will raise between $120 million to $150 million in an initial public offer.
Along with raising new capital to fund its attack on the US market, an entity associated with chief executive and founder Ian McCrae will sell up to $5 million of shares in the float.
It is expected that a prospectus and investment statement will be available later this month with the shares to be quoted on the NZX main board and ASX in late November.
It's understood broker reports issued earlier this month had a wide ranging valuation on the company from between $550 million to $900 million though most analysts are picking the valuation will end up around the $800 million mark.
A bookbuild process will be held in early November where fund managers and institutions will state what shares they want and for what price. Deutsche Craigs and First NZ Capital have been appointed lead managers for the offer. There is expected to be strong demand for the IPO which has been talked about for the past two years.
The new capital will be used to accelerate the company’s research and development capacity for new opportunities in the management of patient healthcare, improve the implementation and delivery capability, and provide additional financial liquidity.
Orion Health was founded in 1993 by McCrae who remains the majority shareholder and chief executive. Its cloud-based products and solutions are used by clinicians in more than 30 counties for patient data exchange and to improve co-ordination of their care.
The company is split into three groups: Intelligent Integration which is the original part of the business and allows different IT systems within hospitals to talk to each other; Smarter Hospitals which collects all the information on patients into one portal and allows them to be looked after from administration to discharge from hospital; and Healthy Populations which links all health providers in one area and allows patients access to their own health records.
Most revenue in future is expected to come from the healthy populations group with a drive worldwide, and particularly in the US under Obamacare, to reduce spiralling health costs while improving the level of patient care from birth to death and prevent them needing expensive hospital treatment.
Revenue has grown to $153 million in the year ended March 31, 2014 and though Orion Health has been profitable in the past, it’s not currently while it reinvests most of its healthy cashflow back into expansion globally. Most of that has gone into new hires with total staff numbers now at 1,100 worldwide. It has achieved high growth rates ranging between 25 percent and 30 percent for many years and has a revised target of hitting $1 billion revenue by 2020. Some 90 percent of revenue is derived offshore.