Ryman has taken a decisive action to reset balance, announcing an approximate $1 billion equity rising.
Ryman Healthcare Limited has announced an approximately NZD 1 billion equity raising (Offer) comprising a NZD 313 million underwritten institutional placement (Placement) and an approximately NZD 688 million underwritten pro-rata accelerated non-renounceable entitlement offer (Entitlement Offer).
The purpose of the Offer is to enhance Ryman’s financial position in the current market and provide the platform to achieve improved performance and value for shareholders as market conditions recover.
Ryman Chair Dean Hamilton said that the equity raise will reset the balance sheet, reducing pro-forma gearing from 37.3 percent to 23.1 percent and providing Ryman with the foundations to deliver further transformation initiatives, with a renewed focus on its operational reset.
“We are on a journey and have already made significant transformation progress over the past 12 months, including our Board, management and governance refresh, changes to our pricing model and moving to a functional structure. Resetting our balance sheet will support us to progress our business improvement programme further,” said Hamilton.
Ryman CEO Naomi James, who joined Ryman in November 2024, said that the business improvement programme is now firmly focussed on releasing cash from the business (over NZD 500m target over the next three to five years), targeting sustainable business improvement (NZD 100-150m target in annualised cash improvement through both revenue and cost opportunities over three to five years), and taking a disciplined approach to growth.
“We are transforming how we operate so that our residents continue to have the best experience in retirement living, with access to industry leading care. Our continuum of care model uniquely positions Ryman to meet the increasing demand for aged care in New Zealand and Australia, which is growing rapidly ahead of the supply available in both countries,” said James.
“Since joining Ryman, I have seen first-hand our unique value proposition in the market, which offers our residents access to the level of care they require as their needs change, giving families the confidence their loved ones will be looked after through their later years,”
The Offer has a fully underwritten placement of new fully paid ordinary shares (New Shares) to eligible institutional shareholders and new institutional investors (Placement) to raise approximately NZD 313 million, and a fully underwritten one for 3.05 pro-rata accelerated non-renounceable entitlement offer of New Shares to eligible shareholders (Entitlement Offer) to raise approximately NZD 688 million.
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