Orion Health

[sb9]

http://www.nzherald.co.nz/business/n...ectid=11346088

[Harvey Specter]

http://www.sharechat.co.nz/article/7...ipo-price.html

The company has issued three lots of new shares this year, in June and August, with the shares priced on each occasion at $4 per share. That price multiplied by Orion Health’s current total shares of 140,033,954, values the company at $550 million.

[Santiago]

Holy cow. I just looked at their careers page, and they're hiring like crazy all over the world right now. I'm going to get my kids learning how to code- the number of jobs available in NZ, and elsewhere, with these guys, Xero, and others is off the hook. In terms of ambition, I guess Orion are planning a major push toward global domination based on their hiring plans.

[sb9]

Extract from NBR website: Price set between $4.30 to $5.70 per share, thoughts??? Bit steep IMO...


"Orion Health Group, which develops software systems for patient health management, wants to raise up to $150 million in an initial public offer which would value the firm at almost a billion dollars and give public investors up to 17.4 percent of the company.
The Auckland-based company plans to sell between 21.9 million and 29.1 million shares at $4.30 and $5.70 apiece, raising between $125 million and $155 million, the bulk of which will be new capital, according to its prospectus. That would value the company at between $720 million and $915 million by market value.
Alongside the new capital chief executive and founder Ian McCrae selling up to $5 million into the float. (Mr McCrae, recently added to the NBR Rich List, owns 58% of the company). Existing shareholders are estimated to keep between 82.6 percent and 86.3 percent of Orion after the float.
The new funds 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.
A final price is expected to be set on Nov. 7, with a dual-listing on the NZX and ASX scheduled for Nov. 26. The offer opens on Nov. 10 and closes on Nov. 21.
Orion’s revenue grew to $153 million in the year ended March 31 and while it has been profitable in the past, it’s not currently because it is reinvesting most of its cashflow back into global expansion.
The company is forecast to post a loss of $14.8 million in the six months ended Sept. 30, 2014 on sales of $80.5 million. Annualised recurring revenue, the favoured sales measure of software as a service firms, is expected to rise to $52.1 million in the first half of the 2015 year from $44.2 million as at March 31.
The software developer has reinvested most of its recent cashflow 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."

[Beagle]

Looks like a great deal...for the promoter's.

[GoldenStag]

"value the company at between $720 million and $915 million by market value."

I guess they must be happy to list at the lower end of their IPO range.

[Casino]

Extract from NBR website: Price set between $4.30 to $5.70 per share, thoughts??? Bit steep IMO...


"Orion Health Group, which develops software systems for patient health management, wants to raise up to $150 million in an initial public offer which would value the firm at almost a billion dollars and give public investors up to 17.4 percent of the company.
The Auckland-based company plans to sell between 21.9 million and 29.1 million shares at $4.30 and $5.70 apiece, raising between $125 million and $155 million, the bulk of which will be new capital, according to its prospectus. That would value the company at between $720 million and $915 million by market value.
Alongside the new capital chief executive and founder Ian McCrae selling up to $5 million into the float. (Mr McCrae, recently added to the NBR Rich List, owns 58% of the company). Existing shareholders are estimated to keep between 82.6 percent and 86.3 percent of Orion after the float.
The new funds 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.
A final price is expected to be set on Nov. 7, with a dual-listing on the NZX and ASX scheduled for Nov. 26. The offer opens on Nov. 10 and closes on Nov. 21.
Orion’s revenue grew to $153 million in the year ended March 31 and while it has been profitable in the past, it’s not currently because it is reinvesting most of its cashflow back into global expansion.
The company is forecast to post a loss of $14.8 million in the six months ended Sept. 30, 2014 on sales of $80.5 million. Annualised recurring revenue, the favoured sales measure of software as a service firms, is expected to rise to $52.1 million in the first half of the 2015 year from $44.2 million as at March 31.
The software developer has reinvested most of its recent cashflow 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."

Do we have half-year results of previous years?

[Beagle]

Will be good to have some competition for xero in the "New Zealand's greatest loss-making Saas" sweepstake.

Sweepstake implies that one might actually be a winner and make some real money...

[GoldenStag]

I was really looking forward to this IPO. I am quite deflated now. Why do some companies get too greedy whne they list? It ruins the IPO and hangs over the stock for months.

Annualised recurring revenue of $55m with a potential $915m sell tag?! This is nearly 20 times recurring company revenue - revenue! Not even talking about earnings!

[Harvey Specter]

Annualised recurring revenue of $55m with a potential $915m sell tag?! This is nearly 20 times recurring company revenue - revenue! Not even talking about earnings!

The ARR is only $55m of the $80m revenue for the 6 months. So double thst for full year - $160m of revenue for the year. So about 5x revenue so not to bad. Growth is 'only' 20-40%.