Orion Health makes impressive stock exchange debut
Orion Health made an impressive debut on the New Zealand and Australian stock exchanges last week, with shares settling well above the issue price and valuing the company at $NZ1 billion.
Shares of Orion Health began trading on the NZX Main Board and the ASX last Wednesday following an initial public offering (IPO) that raised $NZ120 million in new capital.
The shares were priced at $NZ5.70, at the top of the indicative price range. This morning they had settled in to $6.20 on the NZX and $A5.50 ($NZ6) on the ASX having peaked at $A6.03 on the Australian exchange last week.
Orion Health chairman Andrew Ferrier said the company was now well equipped with the necessary resources to invest further in research and development.
Australia's Telstra Health was one of an estimated 20 organisations that took up the offer during its book build, investing $NZ20 million in the company.
Telstra has spent over $100 million in the last 18 months investing in or acquiring health IT firms. While there are no firm details on what ventures Telstra and Orion will work on together, Telstra Health managing director Shane Solomon said it would include a number of eHealth initiatives, including medications management.
Telstra recently bought Australia's leading vendor in the residential and community aged care sector, iCareHealth, which has had a medication management module for a number of years.
“The whole area of medication management, including hospitals, we are deeply interested in,” Mr Solomon said.
“iCareHealth is dominant in the market in the area of medication management within residential aged care, so there is tremendous value if we can build on (community pharmacy leader) Fred IT and integrate with hospital information through Verdi and with Orion, to move towards an integrated medication record.”
Orion Health CEO Ian McCrae said the company was now funded to significantly increase its research and development efforts to expand is capability.
“[I] am very excited that many of these great new roles will be in the New Zealand IT sector,” he said.
Posted in New Zealand eHealth