AH1
Advent Health Limited
Health Service Provider
Closed
Price
1.000
Existing Issue
-
Additional Issue
-
Subscription
21.00M
Stock Issue
21.00M
MarketCap
44.50M
Open Date
2020-05-25
Close Date
2020-07-31

Overview

Advent Health (AH1) is a provider of allied health services in the Australian market. AH1 has entered into contracts to acquire 12 groups of allied health businesses. The Initial Portfolio of businesses comprise of 59 locations providing allied health services to clients across Queensland, New South Wales, Victoria, South Australia and Western Australia. Advent Health provides truly multi-disciplinary allied health services as the health industry evolves to improve wellness and provide preventative care and rehabilitation services outside traditional surgical and hospital-based settings.

Disclaimer:

Information / summary provided on this webpage comes from the Prospectus, which only serves general information purposes. It shall NOT be considered as complete or a substitute for you to read and understand the Prospectus. You shall not rely on information provided here for your investment decisions. Prior to making any investment decisions, it is important for you to read and understand the Prospectus and/or any other disclosure documents issued by the relevant product issuer, to ensure that you fully understand the risks involved in light of your personal circumstances; and you shall also obtain professional / independent financial advice.

This page contains IPO information based on the Replacement Prospectus updated on 18 May 2020**. Link for the Prospectus:

https://mhdoffer.thereachagency.com/offer/**

Disclaimer: Information / summary provided on this webpage comes from the Prospectus, which only serves general information purposes. It shall NOT be considered as complete or a substitute for you to read and understand the Prospectus. You shall not rely on information provided here for your investment decisions. Prior to making any investment decisions, it is important for you to read and understand the Prospectus and/or any other disclosure documents issued by the relevant product issuer, to ensure that you fully understand the risks involved in light of your personal circumstances; and you shall also obtain professional / independent financial advice.

Updated Information

02/04/2020 Interim Stop Order Issued

22/04/2020 Interim Stop Order Issued

18/05/2020 Revocation of Stop Order

18/05/2020 Replacement Prospectus

Investors interested in applying for this IPO should call 61Financial customer service hotline 0432 555 561 or email katie.feng@61financial.com.au for details of this IPO subscription.

Updated Key Dates

text (Disclaimer: The above key dates are for references only. They are subject to change by the company at any time. You shall not rely on this information for any investment decisions. For any changes, you shall refer to the company’s official website or the latest version of the Prospectus. While reasonable efforts are made to update the information, we make no warranty about the accuracy, completeness, reliability or timeliness of the information.)

IPO Summary

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Details of The Offer

Lead Manager

  • Novus Capital Limited

The Company is offering 21,000,000 Shares to the public at an issue price of $1.00 each to raise $21,000,000 before costs (Public Offer). The Offer is not underwritten.

Use of Funds

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Business Model

Advent Health’s business model is to identify, acquire, integrate, operate and expand a network of multi-disciplinary allied health practices in Australia.

 

The benefits of Advent Health business model to the Initial Portfolio Businesses is:

 

  • founders retain equity share in the listed entity
  • benefits from economies of scale
  • growth options with specialised management and resources to pursue acquisitions
  • access to a larger talent pool
  • ability to share knowledge among practitioners and provide training.

Practices Acquisition

  • Queensland – 33 locations
  • New South Wales – 12 locations
  • Victoria – 9 locations
  • South Australia – 3 locations
  • Western Australia – 2 locations

text (Practices Footprint)

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Advent Health has entered into agreements to acquire full ownership of the Initial Portfolio Businesses. Practice Owners remain engaged with Advent Health to continue to drive and grow their practices. On average at least 30% of the acquisition cost has been paid as equity in Advent Health to ensure Practice Owners are engaged.

 

The Initial Portfolio of practices will be acquired at a weighted average multiple of approximately 5.1x historical EBITDA.

 

The Practice Owners of the Initial Portfolio will receive a combination of cash and Shares in Advent Health in consideration for the sale of their business. The total consideration for the Initial Portfolio is $40.5 million comprising cash of $28.09 million and Shares of $12.15 million at the Offer Price. One Practice Owner has a component of Deferred Consideration of $0.3 million payable at the end of two years.

 

Practice Owners shares will be escrowed for 24 months and will have conditions on the practice performance during that period.

 

The Initial Portfolio will provide Advent Health with a multi-disciplinary group of allied health practices across Australia comprising 59 locations and around 300 clinicians, and a foundation for future growth.

Initial Portfolio Characteristics

  • multi-site practice groups
  • profitable operating history
  • focus on multi-disciplinary allied health approach or speciality services
  • primary locations allow for growth and landmark locations
  • high clinical standards with experienced clinicians.

Source of Revenue and Expense

Advent Health will primarily receive revenue through the provision of allied health services to patients at its practices. The key drivers of revenue include:

  • number of practices in the Group;
  • utilisation at each practice;
  • number of clinicians in the Group;
  • number of consultations performed by the Group;
  • fees charged for services; and
  • mix of products and services.

Key expense are as follow:

  • Employee benefits –61%;
  • Facility expenses – 2%
  • Corporate services –5%; and
  • Other expenses - 9%

Growth Strategy

Organic revenue growth

  • Creating in-demand special programs for corporates, insurance companies and government funded PHN’s.
  • Deepening the service offering by the provision of extra services in developing the multi-disciplinary practice model.

Acquisition and location expansion

  • Acquisition of additional practise groups from our pipeline as well as new opportunities.
  • Setting up of greenfield sites based on successful models already pioneered by group members.

Growth in Margins

  • Adding more specialty services that have higher margins across the broader Advent Health footprint where they are currently not being offered.
  • Embracing technology to add alternative channels to market.

Formation of strategic partnerships

  • Building strategic partnerships with corporations, health insurance companies and government agencies to offer comprehensive health packages which provide long-term wellness for patients.

Capital Structure

On completion of the Offer:

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Financial Performance

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Directors and Key Management

Louis (Lou) Panaccio MAICD

Independent Non-Executive Chairman

Lou is a chartered accountant with over 30 years of management experience in business and health care services. He is currently on the boards of ASX listed companies Sonic Healthcare Limited, Avita Medical Limited and Rhythm Biosciences Ltd. Lou is also on the board of Unison Housing Limited. Lou has extensive experience as a board member of both public and private, for profit and not for profit companies. Lou is Chairman of two ASX listed health care businesses. Previously, Lou was the CEO of the Melbourne Pathology Group and Monash IVF Group, and also executive Chairman of Health Networks Australia (HNA). NHA was an allied health group with 34 Practices which sold into Zenitas Limited for its ASX listing in 2016.

 

Cris Massis

Director and Chief Executive Officer

Cris has had a diverse career over 20 years across the disciplines of sales and marketing, business development, policy development and management. He has held positions at the Bob Jane Corporation, St Kilda Football Club, CPA Australia and the Australian Physiotherapy Association. Cris also serves on the Board of Early Childhood Intervention Australia (Vic/Tas), has been a trustee of two research foundations and provides mentoring to women in senior management roles.

 

Bryce Wedemeyer

Executive Director

Bryce is an admitted legal practitioner in Queensland and has graduated as a Chartered Accountant. Bryce also holds a Graduate Diploma in Applied Finance and Investment and has qualifications in Project Management. Bryce has previously been an ASX Director, having to lead a turnaround team before successfully dealing with an on-market takeover. Bryce has 18+ years’ finance and business operations experience.

 

Wei Huang

Independent Non-Executive Director

Wei is an experienced ASX company director. He is an Executive Director of Hudson Investment Group Limited and will, following Completion of the Proposed Transactions, be the former Chairman of Millennium Limited. Wei holds a Bachelor of Economics from Macquarie University and a Master of Commerce from the University of New South Wales. He is a member of CPA Australia. He has experiences in financial control, new business start-ups and development within the textile, retail, financial services, construction and mining sectors in Australia and internationally.

 

Melanie Lenydin

Company Secretary

Melanie has over 25 years’ experience in accounting and corporate secretarial functions including extensive experience in relation to public responsibilities including the ASX and ASIC. Melanie is a Chartered Accountant and a Registered Company Auditor as well as Director and Founder of Leydin Freyer which specialises in company secretarial services to ASX listed companies

 

Robert Andlrewartha

Chief Finanacial Officer

Robert has had over 25 years of CFO experience for a large privately-owned company, most notably as the CFO for Solomon Lew’s privately-owned group of companies. Here he was responsible for managing 7 businesses over 120 sites, 600 staff and a turnover of >$250m. During the last 15 years, he has been the CFO/General Manager of a large services and distribution business, which grew under his guidance from a turnover of $30m to $150m. During his tenure here he also managed the sale of the business to Private Equity.

 

Peter McInulty

Chief Performance Officer

Peter has held a number of senior financial, strategy and operational roles with companies such as Siemens USA, Meggitt plc, Leigh Mardon Group, Tenix Defence and Rising Sun Pictures. Peter is an Associate of the Chartered Institute of Management Accountants, a Graduate of the Australian Institute of Directors, a Fellow of the Governance Institute of Australia, Graduate of the Royal Military Academy Sandhurst and holds a Post Graduate Diploma in Management and a GIA Certificate in ASX Listing Rules.

 

Disclaimer

ASX Codes, Offer Opening and Closing Dates are proposed only and are subject to change without notice.