Wednesday, December 03, 2014
Orion Health Lists In Australia And NZ Shares Seem To Be Coming Off A Bit And Thinly Traded In Oz At Least.
This appeared last week:
Following 21 years of business, a successful IPO pitch and global expansion - Orion Health has today began trading on the NZX Main Board and ASX.
Shares of Orion Health Group Limited today began trading on the NZX Main Board and ASX following a successful IPO that raised $125 million including $120 million in new capital.
Strong demand for the shares from eligible institutions and the clients of NZX firms saw the shares priced at $5.70, at the top of the indicative price range of $4.30-$5.70.
Orion Health Chairman Andrew Ferrier says the Company is delighted to have attracted the strong support of all its new shareholders.
“Both our new shareholders and those who have supported the company over the last 21 years clearly understand the dynamics of the health data expansion and Orion Health’s ability to deliver world class solutions that will provide better outcomes for patients, providers and those who fund healthcare services," he says.
“At Orion Health we are now well equipped with the necessary resources to invest in further research and development to capture these once in a generation opportunities.”
Orion Health Founder and Chief Executive Officer Ian McCrae says health sectors in many countries are keenly aware of the impending funding crisis they will experience in the next few years.
"This will be driven by ageing populations, the huge increase in health data likely to flow from new devices and the demands of patients for greater control over their own healthcare," he adds.
“Orion Health is already at the forefront with solutions that are delivering benefits to our 450 customers across 25 countries.
There is also coverage here:
Summary: Early trading sees shares in the health software developer lift from NZ$5.70 to NZ$6.60 after its NZ$125 million IPO.
Healthcare software company Orion Health Group began trading on Wednesday on the New Zealand Stock Exchange (NZX) and Australian Securities Exchange (ASX) following an initial public offering (IPO) of NZ$125 million, including NZ$120 million in new capital.
Strong demand saw the shares priced at NZ$5.70, at the top of the pre-IPO indicative price range. However, shortly after opening, they were trading as high as NZ$6.60.
Orion undertook the offer to raise funds for further research and development.
"We are now funded to significantly increase our research and development efforts to expand our capability and solutions for customers, and I am very excited that many of these great new roles will be in the New Zealand IT sector," founder and chief executive Ian McCrae said.
Lots more here:
Thus far - as far as Friday 28 November 2014 - the shares came on at $A6.05 and are now trading at $A5.54 ($NZ6.02) so the stag profit gain seems to fading. It's up a little as of the Wednesday ($A5.70) but very little trade (none today as of 3:15pm)
The proof of the quality of the company will emerge after one or two reporting periods - so we can just wait and see!
These 2 paragraphs have to be a little worry:
“Orion reported sales of NZ$83 million for the six months ended September 30, 2014, up from NZ$69 million for the same period of 2013.
However, expenses grew significantly as well, up from NZ$73 million to $103.9 million, driven by increased employee costs. That drove Orion to a total loss of NZ$13.6 million for the period from NZ$4 million in the same half of the previous year.”
No wonder they had to raise some money on the stock exchange - you can’t go on losing this amount of money forever.
Posted by Dr David More MB PhD FACHI at Wednesday, December 03, 2014