VET SHARES BOUNCE TO A HEALTHY PREMIUM ON DEBUT

Written on the 14 August 2015 by Laura Daquino

VET SHARES BOUNCE TO A HEALTHY PREMIUM ON DEBUT SHARES in Brisbane's newest player in veterinary services have bounced to a 30 per cent premium on their first day of trading on the ASX.

National Veterinary Care's (ASX:NVL) $1 shares debuted at $1.26 and hit a high of $1.32 within the first half hour of trading, which saw more than 1.1 million shares change hands.

The company is vying for a piece of Australia's $2.6 billion veterinary services sector, alongside established Brisbane rival Greencross (ASX:GXL).

NVC is starting its journey out of a clinic in Albion, Brisbane. Investor funds raised through its IPO will be directed towards acquiring another 34 clinics.

Following this, the company aims to acquire another 10 clinics in its first year and 15 per year after that.

The company's roll up strategy involves steering clear of the retail sector, an area the 125 clinic-strong Greencross is increasingly focusing more on.

NVC CEO Tomas Steenackers (pictured right with NVC chairwoman Susan Forrester), formerly of Greencross, has told Brisbane Business News the company was formed out of the desire to reduce the administration associated with running a vet practice to ensure better outcomes on the clinical front.

The company intends to disrupt relatively discretely, avoiding branding acquired practices as their own, minus a front door sticker, to retain the 'friendly local vet' vibe.

"NVC reduces the paperwork burden associated with running a vet practice, and the vets can do what they do best: provide excellent medical care and advice," says Steenackers.

"Many of our vets have been business owners for 50 years, so we find it a bit outrageous to come in and tell them to change their style. It worked for a reason."

While there are risks, NVC CEO Tomas Steenackers says the integration strategy has been well thought-out, with Albion being purchased to test the systems early on.

NVC was originally poised to begin trading on the ASX on August 5 but its original prospectus hit an ASIC hurdle. The company was asked to clarify some if its financials through a revised prospectus, which pushed back the listing date.

On debut, NVC's market capitalisation currently stands about $43 million. Greencross listed in 2007 with a market value of around $30 million and is now worth more than $800 million.



Author: Laura Daquino Connect via: Twitter LinkedIn

Latest News

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

MEET THE MELBOURNE ACCELERATOR PROGRAM BUILDING THE FUTURE OF CYBER SECURITY STARTUPS

IN the wake of the WannaCry ransomware attack, companies are more often considering how personal data is protected...

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

Related News

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter