Oceania considers floating as it plans up to $500m expansion

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One of New Zealand’s largest privately owned aged care and retirement village companies, Oceania, is planning an expansion of around $500 million, in order to raise more capital after making a loss in its 2014 financial year.

Oceania Healthcare chief executive, Earl Gasparich, said the reason Oceania is looking at an IPO was to address its high debt levels in 2014 and to “…raise more capital to enable us to continue the development growth.”

Gasparich said the size of the planned expansion means the company is considering an initial public offering on the NZX but that no firm decision has yet been made.

“There are plenty of investors who want to get into the sector – overseas investors, local New Zealand companies and Australian investors with aged care assets keen to expand. We’re considering an IPO but have not made any decisions,” he said.

About 3000 people live in Oceania’s New Zealand aged care facilities and 1000 people are in its retirement villages.

Oceania doesn’t need to buy land for its intended expansion as the targeted build rate of 200 units a year can be accommodated on brownfields sites.