The Newswire

Your daily serving of financial goodness

Oneview Healthcare to Launch the Largest IPO on ASX Year-to-Date

Oneview Healthcare to Launch the Largest IPO on ASX Year-to-Date
Oneview Healthcare Aims to Disrupt ‘Traditional’ Patient Engagement in the Healthcare Sector
Mar 07, 2016 By Simon Herrmann Tags: IPO

Irish software provider Oneview Healthcare PLC is launching the largest IPO on the ASX year to date, raising $62.4 million in a $208.5 million listing.

The healthcare information technology market is expected to rise at a compound annual rate of 13.4% over the next five years as global expenditure is estimated to reach US$228.8bn by 2020. Healthcare spending is expected to rise due to an ageing population and technical developments in the industry. OECD has estimated that healthcare spend in Australia has accounted for approximately 9% of GDP in 2013.

Patient engagement is an essential part of the healthcare sector and current global expenditure is estimated to be worth US$5.5billion. However, we have witnessed limited technological developments to date.

The largest ASX IPO year-to-date is Oneview Healthcare PLC, headquartered in Dublin, Ireland, which aims to disrupt the ‘traditional’ engagement with patients. Oneview offers IT solutions that are designed to enhance patient engagement and facilitate communication between hospitals, staff, patients and family members. Oneview believes that its software application drives cost efficiencies, improves clinical outcomes and enhances the patient’s experience. 

To date Oneview has been successful in securing 19 contracts with a variety of healthcare facilities, covering a total of 3,292 beds. Management is confident that further contracts can be secured in a market that the company believes offers the potential of more than 1 million beds globally. Oneview has contracts in USA, Australia, Middle East and Europe.

Contracts with healthcare facilities are based on a recurring subscription model and usually valid for 3-5 years. Oneview is in negotiations with a number of tenderers, which represents an opportunity to new revenue sources over the next 12 months. In 2015 Oneview generated revenue of €2.3m and posted a net loss of €10.6m. The proceeds of the raising will be put towards sales and marketing as well as research & development, as management targets vertical and geographical expansion. It is worth noting that Oneview is not yet profitable and is expected to remain reliant on external capital for the foreseeable future. The company may raise additional capital post-listing.

Oneview is priced at $3.58 per share which implies a market cap of $208.5million. In our view this incorporates a substantial degree of further growth, which skews the required risk appetite out of balance.

IPO Details

Company: Oneview Healthcare PLC

ASX Code: ONE

Shares on Offer: 17.4 million

Listing Price: $3.58

Market Capitalisation: $208.5million

Listing Date: March 17   

 

This publication also appeared on The Australian.

Share this article

Simon Herrmann Author: Simon Herrmann Mar 07, 2016

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.


Interested in IPOs? Bid directly here:

Loading...
Disclaimer: Clicking on this link will take you to a third-party website. We do not control or give advice regarding the content or links that appear on these sites and Wise-owl accepts no responsibility or liability in respect of any third party materials. Wise-owl may earn a commission from any product or service from third party websites.

Northern Cobalt banks on lasting cobalt boom

Northern Cobalt Limited (ASX:N27) is the latest cobalt exploration company to list on the ASX. Seeking to raise up to $6 million, should investors consider this junior explorer?

Author: Simon Herrmann Aug 07, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News