Glen Richards-Backed Healthia Limited to List on the ASX$26.8m Initial Public Offer Opens

Highlights:

• Healthia Limited (Healthia or the Company) is seeking to consolidate two highly fragmented health sectors, physiotherapy and podiatry, to meet growing demand for these services from an ageing and increasingly health-conscious population.
• Fully underwritten Initial Public Offer (IPO) of 26.8 million shares at $1.00 each to raise about $26.8 million, plus a Clinician Participation Offer of up to 7.5 million shares at $1.00 each.
• IPO proceeds will largely be used to help fund acquisitions of podiatry and physiotherapy businesses.
• A Clinical Retention Program (CRP) includes structured education and training initiatives and Clinic Class Shares (CCS) to be offered to clinicians to retain staff and establish alignment between clinicians and shareholders.
• Healthia’s board and management team, which includes the founding chief executive of veterinary services provider Greencross, Dr Glen Richards, and former Greencross chief financial officer Wesley Coote, is highly regarded and experienced, with demonstrated integration and aggregation expertise.

BRISBANE, Australia--(BUSINESS WIRE)-- Healthia Limited (Healthia or the Company), is aiming to become one of Australia’s leading allied health companies offering podiatry, physiotherapy and related services, with the opening of a $26.8 million Initial Public Offer (IPO) to list on the Australian Securities Exchange.

Allied health refers to health professionals who are not doctors, dentists or nurses.

Healthia, which is the holding company that owns and operates 56 My FootDr podiatry clinics, orthotics laboratory iOrthotics and 50 per cent of allied health supplies business D.B.S. Medical intends to use the IPO proceeds to fund the acquisition of additional podiatry, physiotherapy and hand therapy businesses.

Following completion of the acquisitions, the group will operate 72 podiatry clinics under the My FootDr brand, 23 physiotherapy clinics under the Allsports Physiotherapy brand, seven hand therapy clinics under the Extend Rehabilitation brand, iOrthotics, and a 75 per cent stake in D.B.S. Medical. Healthia also intends to introduce podiatry services into physiotherapy clinics where these services do not already exist.

According to IBISWorld industry data, the Australian podiatry sector generated revenue of $900 million in 2017 and the physiotherapy sector $1.7 billion.

Healthia says funds raised and a listing on the ASX will help it complete acquisitions, give it access to capital markets, provide the benefit of a public profile as a listed entity, allow existing shareholders to realise some of the value in My FootDr podiatry clinics, and provide funds for more acquisitions.

Healthia believes that Australia’s highly fragmented allied health industry offers a commercial opportunity for an integrated provider to meet an increasing demand for physiotherapy and podiatry services as the population ages and becomes more health-conscious, and to help clinicians reduce administrative burdens within their practices.

Healthia chairman Glen Richards, who is also co-founder of the Greencross veterinary and pet care group, and a judge on Channel Ten’s Shark Tank program, said Healthia can become a leading allied health provider.

“The integration of these well-established podiatry and physiotherapy businesses, combined with the opportunity to acquire additional practices at attractive multiples and vertically integrate two aligned wholesale supply businesses, is a compelling commercial opportunity,” Dr Richards said.

“Through cross-referrals, improved management systems as well as an attractive clinician retention program, we have an opportunity to create a leading allied health provider group delivering high-quality services to the community.”

Healthia is offering about 26.8 million ordinary shares at $1 .00 per share under its Chairman’s List Offer, Broker Firm Offer and Institutional Offer. The Company is also offering an additional 7.5 million shares at $1.00 per share to eligible clinicians (Clinician Participation Offer) as part consideration for the clinicians’ health businesses.

The Company’s indicative market capitalisation is about A$63 million upon listing on the ASX.

Upon listing on the ASX, Healthia aims to deliver increased revenue and profits through long-term organic growth, further acquisitions of complementary allied health businesses, and centralised support initiatives.

The Company aims to use the vertically integrated businesses such as iOrthotics and D.B.S. Medical to drive buying synergies, optimise the operations of existing clinics, generate cost savings through scale and improve practice management.

In addition to long-term organic growth, Healthia will focus on the retention and incentivisation of its clinicians through the Clinician Retention Program (CRP) to ensure that the interests of clinicians and shareholders are aligned. Apart from a series of structured education and training initiatives, the CRP will provide clinicians with the opportunity to own a portion of the clinic that they work in via Clinic Class Shares (CCS).

Healthia’s IPO expects to start trading on the ASX on 11 September 2018.

The IPO is fully underwritten by Canaccord Genuity (Australia) Limited.

The offer of shares for issue by Healthia Limited is made under a prospectus lodged with the Australian Securities and Investments Commission (ASIC) on 31 July 2018. Copies of the prospectus are available on the IPO website at https://www.healthia.com.au/key-documents/

For further information about Healthia Limited, and the IPO, please refer to the prospectus. Potential investors should consider the prospectus in its entirety before deciding whether to buy shares.

About Healthia

Healthia Limited is an integrated group of health-based companies whose mission is to enrich the lives of people through world-class health services. The group operates an integrated portfolio of allied health businesses which include My FootDr, Allsports Physiotherapy, Extend Rehabilitation, iOrthotics and D.B.S. Medical Supplies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180808005893/en/

If you have any further questions in relation to the IPO, please contact:

Company

Healthia Limited

Wesley Coote, +61 7 3180 4900

CFO and Company Secretary

[email protected]

Investor and Media Relations

WE Buchan

Kyahn Williamson / Trevor Chappell, +61 3 9866 4722

[email protected]

Source: Healthia Limited