Perth, June 7, 2006 (ABN Newswire) - Perth-based Capitol Health Limited (ASX: CAJ) says its Initial Public Offer (IPO) has closed early after subscriptions easily exceeded the A$1.8 million sought. The Company is expected to list on the ASX this Friday 9th June, ahead of its original mid June timing.
The Company offered 9 million ordinary shares at an issue price of 20 cents each to raise $1.8 million with the Offer fully underwritten by Marketech Pty Ltd.
Capitol will now list on Friday with 56.1 million shares on issue and a total market capitalisation at listing of over $11 million.
"This is an outstanding start to our vision of bringing to the national dental sector, the benefits of consolidation already available to other medical and allied health practitioners," Capitol Health's Managing Director, Mr Andrew Harrison, said today.
"The ready market support for our business model sends a strong signal to both dental practitioners and equities markets that there is considerable opportunity for value-adding in the sector through innovation," Mr Harrison said.
Australia's dental healthcare bill accounts for around A$2.4 billion in transactions each year.
Under the Capitol Health plan, the Company will acquire profitable surgeries and facilities around Australia to allow dentists to continue practising, with Capitol Health providing administrative and management support.
Capitol will continue to operate acquired surgeries under their existing banner rather than imposing a common national brand, and pay particular attention to building on local patient loyalties already established by the vendor dentist.
The Company has already acquired two surgeries - at Booragoon in Perth and at Fremantle - and is considering other acquisitions.
"The two practices generated revenue of over A$1.6 million for the year ended 30 June 2005 so we will be cashflow positive at an operational level from our first day on the ASX," Mr Harrison said.
Acquisitions of surgeries will be financed on a 60-70% debt basis, and initial service and facilities contracts with dentists will be for 2-5 year terms.
Source: Kevin Skinner Senior Consultant FIELD PUBLIC RELATIONS
231 South Road MILE END SA 5031 Tel: (08) 8234 9555 Fax: (08) 8234 9566 Mob: 0414 822 631 kevin@fieldpr.com.au
About CAPITOL HEALTH
Directors: Mr Andrew Harrison - Managing Director Mr Harrison has significant experience in both senior management and board positions in publicly listed companies including Brambles Industries Limited.
Dr Russell Fine - Clinical Director - Non-Executive Dr Fine is a founding member of Capitol Health and a Board Certified Dentist.
Mr Anthony Ho - Non-Executive Director Mr Ho graduated in 1980 with a Bachelor of Commerce from the University of Western Australia. He qualified as a Chartered Accountant in 1983 with Deloittes.
Contact
Andrew Harrison Capitol Health TEL: +61 (08) 9382 1311 / 0415 324 359
Kevin Skinner Field Public Relations TEL: +61 (08) 8234 9555 / 0414 822 631
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