Strong support for Summerset offer

The share offer for retirement village operator Summerset Group has attracted strong institutional and retail support, with bids received across an indicative $1.40 to $1.60 a range, a source familiar with the issue said.

"The markets have been volatile, so the fact that the institutions and the retail investors have been supportive is a good sign,'' he said.

Summerset, which is majority-owned by Australia's Quadrant Private Equity, is in the middle of a so called "book-build'' - an auction-style process aimed at institutions and retail sharebrokers who bid for their share allocations.

Quadrant is putting 30 per cent of its 97 per cent stake in the company up for sale, and is raising capital for the company's expansion. Quadrant will remain a majority shareholder.

The share offer opens on October 10 and closes on October 26. The shares are expected to list on the NZX on November 1.

The Summerset offer is being seen as an important test of investor confidence ahead of two other issues expected over the next few months. Another retirement village operator, Vision Senior Living, is expected to float this year or early next year and Fairfax expects to float 30 to 35 per cent of Trade Me before the year's end.

All three floats have been designed to hit the market before the Government's planned partial privatisation programme gets under way next year, assuming the National Party is returned to power at the November 26 election.

 

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