Quadrant’s Summerset raises $99m through IPO
Quadrant Private Equity-owned Summerset Group, New Zealand’s third-largest retirement village operator, has raised NZ$123.6 million ($99.5 million) in the largest IPO seen in the country in two years. The company sold 88.3 million shares at NZ$1.40 apiece, the bottom end of its indicative range. It is scheduled to start trading on November 1.
Quadrant retains 56% of Summerset, having only exited 41% of its overall holding. It was reported last month that the private equity firm was considering selling as little as 30% due to recent market volatility.
Quadrant first invested A$90.5 million in Summerset in 2008 after then owner AMP Capital Investors failed to take the company public a year earlier. The private equity firm bought a further 50% from AMP last year. Summerset has 2012 forecast pro forma net operating cashflow of NZ51.9 million and total investment properties of NZ$632.6 million. Post-tax profit is expected to be NZ$6 million in 2011 and NZ$9.7 million in 2012. Summerset's strong growth prospects are largely based on the expectation that the number of people in New Zealand aged 75 or over will double in the next 20 years.
The Summerset IPO is New Zealand's largest since outdoor equipment retailer Kathmandu Holdings, another Quadrant portfolio company, raised A$375 million ($393 million) in Australia and New Zealand in 2009. The Australasian capital markets, like many others, had been turbulent of late, and this has restricted exit opportunities for private equity firms. Collins Foods, the Australian fast-food group owned by Pacific Equity Partners, is the only transaction of note, raising A$201.8 million.
Craigs Investment Partners, Deutsche Bank and First NZ Capital were joint book-runners and lead managers for Summerset's IPO. Forsyth Barr was also appointed a joint lead manager.
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