Software firm Orion to seek upto $150m in IPO

Health sector software developer Orion Health is to seek $125 million to $150 million in an initial public offering, with expectations a prospectus and investment statement will be lodged by late October.

Chief executive and founder Ian McCrae is looking to sell up to $5 million shares.

The new capital would be used by Orion for research and development, to improve delivery capability for its growing customer base and to provide additional financial liquidity, the company said in a statement yesterday.

Orion is expecting to be dual-listed on the main boards of the New Zealand and Australian exchanges by late November.

It is understood broker reports issued earlier this month had a wide-ranging valuation on the company - between $550 million and $900 million - though most analysts were picking the valuation would end up around the $800 million mark, BusinessDesk reported yesterday.

A book-build process will be held in early November in which fund managers and institutions will state what shares they want and for what price. Deutsche Craigs and First NZ Capital are lead managers for the offer.

Orion was founded in 1993 by Mr McCrae, who remains the majority shareholder and chief executive. Its cloud-based products are used by clinicians in more than 30 countries for patient data exchange and care co-ordination.

The company is split into three groups. Intelligent Integration, the original part of the business, allows different IT systems within hospitals to talk to each other.

Smarter Hospitals collects all the information on patients into one portal and allows them to be looked after from administration to discharge from hospital, and Healthy Populations links all health providers in one area and allows patients access to their own health records.

 

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