Zenitas to raise $30 million via a placement

Healthcare company Zenitas is raising $30 million via a placement at $1 per share to fund the acquisition of five community-based healthcare businesses.

The company is selling 30 million shares through Bell Potter and Wilsons, which are joint lead managers and book runners for an initial public offering of Zenitas before the end of the year.

Zenita’s market value following the raising will be $44.8m.

The community based healthcare operator provides at home care and primary care solutions that are aimed at reducing the reliance on high-cost acute and post-acute institutional care.

In a term sheet sent to investors, it says that after the transaction is finalised, the company will be a leading Australian listed operator, providing services across allied health, home care and primary care.

The five businesses to be acquired are Health Networks Australia and Ontrac Specialised Health Management from Allied Health, along with Caring Choice from Home Care and St Kilda Road Medical Centre and Dandenong Medical Centre from Primary Care.

It will take the company’s overall portfolio to 54 clinics nationally with 760 healthcare professionals.

The raise will enable the company pay $17.7m in cash for the acquisition, with $7.7m for general working capital raised for potential acquisitions and other funds relating to expenses and transaction costs.

The group will also lodge its prospectus for its float on November 8, before trading on the Australian Securities Exchange in December.