Strong interest in Orion on both sides of Tasman

Orion Health Group lists today following strong demand on both sides of the Tasman which allowed the listing price for shares to be placed at the top of the band at $5.70 each.

There was heavy scaling for the shares, even for the organising brokers Deutsche Craigs.

Because the shares are dual listed, listing in New Zealand may be delayed until the Australian ASX opens at noon New Zealand time.

In a research note, Craigs Investment Partners says Orion Health wants to lead the transformation of healthcare through the increasing use of new sources of information combined with traditional health data.

Orion's traditional software business had a sustained record of strong growth and increasing recurring revenues.

The company had been established for 21 years and had developed strong market positions across its three groups: intelligent integration, smarter hospitals and healthier populations.

The company had consistently delivered operating revenue growth of 26% over the past 10 years with the growth primarily funded internally from operating cash flows.

Orion was well positioned to capitalise on the current population health management opportunity and longer-term sector transformation.

Orion was regarded as the most prominent provider of healthcare inter-operability globally and a major health information exchange vendor in the United States.

Craigs said the healthcare industry was being transformed by digitisation and the exponential growth of health data. Orion believed healthcare was on the brink of a transformational change.

Some of the change would be driven by:

• Healthcare was yet to experience the online transformation seen in other industries such as banking, travel, restaurants, music, business networking, telecommunications and social networks.

• New healthcare devices were emerging to track individuals' fitness, weight, sleep patterns and heart rate.

• Genomics was becoming increasingly affordable and an increase in genome mapping was expected.

• The volume of healthcare data worldwide was expected to increase substantially by 2020.

• The growing expectation of patients to see and interact with their complete health information.

However, there were some risks involved with Orion, including its capability to execute its growth strategy, allegations of intellectual property breaches and competition.

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