Market Overview

Glen Richards-Backed Healthia Limited to List on the ASX $26.8m Initial Public Offer Opens

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Highlights:

  • Healthia Limited (Healthia or the Company) is seeking to
    consolidate two highly fragmented health sectors, physiotherapy and
    podiatry, to meet growing demand for these services from an ageing and
    increasingly health-conscious population.
  • Fully underwritten Initial Public Offer (IPO) of 26.8 million
    shares at $1.00 each to raise about $26.8 million, plus a Clinician
    Participation Offer of up to 7.5 million shares at $1.00 each.
  • IPO proceeds will largely be used to help fund acquisitions of
    podiatry and physiotherapy businesses.
  • A Clinical Retention Program (CRP) includes structured education
    and training initiatives and Clinic Class Shares (CCS) to be offered
    to clinicians to retain staff and establish alignment between
    clinicians and shareholders.
  • Healthia's board and management team, which includes the founding
    chief executive of veterinary services provider Greencross, Dr Glen
    Richards, and former Greencross chief financial officer Wesley Coote,
    is highly regarded and experienced, with demonstrated integration and
    aggregation expertise.

Healthia Limited (Healthia or the Company), is aiming to become one of
Australia's leading allied health companies offering podiatry,
physiotherapy and related services, with the opening of a $26.8 million
Initial Public Offer (IPO) to list on the Australian Securities Exchange.

Allied health refers to health professionals who are not doctors,
dentists or nurses.

Healthia, which is the holding company that owns and operates 56 My
FootDr podiatry clinics, orthotics laboratory iOrthotics and 50 per cent
of allied health supplies business D.B.S. Medical intends to use the IPO
proceeds to fund the acquisition of additional podiatry, physiotherapy
and hand therapy businesses.

Following completion of the acquisitions, the group will operate 72
podiatry clinics under the My FootDr brand, 23 physiotherapy clinics
under the Allsports Physiotherapy brand, seven hand therapy clinics
under the Extend Rehabilitation brand, iOrthotics, and a 75 per cent
stake in D.B.S. Medical. Healthia also intends to introduce podiatry
services into physiotherapy clinics where these services do not already
exist.

According to IBISWorld industry data, the Australian podiatry sector
generated revenue of $900 million in 2017 and the physiotherapy sector
$1.7 billion.

Healthia says funds raised and a listing on the ASX will help it
complete acquisitions, give it access to capital markets, provide the
benefit of a public profile as a listed entity, allow existing
shareholders to realise some of the value in My FootDr podiatry clinics,
and provide funds for more acquisitions.

Healthia believes that Australia's highly fragmented allied health
industry offers a commercial opportunity for an integrated provider to
meet an increasing demand for physiotherapy and podiatry services as the
population ages and becomes more health-conscious, and to help
clinicians reduce administrative burdens within their practices.

Healthia chairman Glen Richards, who is also co-founder of the
Greencross veterinary and pet care group, and a judge on Channel Ten's
Shark Tank program, said Healthia can become a leading allied health
provider.

"The integration of these well-established podiatry and physiotherapy
businesses, combined with the opportunity to acquire additional
practices at attractive multiples and vertically integrate two aligned
wholesale supply businesses, is a compelling commercial opportunity," Dr
Richards said.

"Through cross-referrals, improved management systems as well as an
attractive clinician retention program, we have an opportunity to create
a leading allied health provider group delivering high-quality services
to the community."

Healthia is offering about 26.8 million ordinary shares at $1 .00 per
share under its Chairman's List Offer, Broker Firm Offer and
Institutional Offer. The Company is also offering an additional 7.5
million shares at $1.00 per share to eligible clinicians (Clinician
Participation Offer) as part consideration for the clinicians' health
businesses.

The Company's indicative market capitalisation is about A$63 million
upon listing on the ASX.

Upon listing on the ASX, Healthia aims to deliver increased revenue and
profits through long-term organic growth, further acquisitions of
complementary allied health businesses, and centralised support
initiatives.

The Company aims to use the vertically integrated businesses such as
iOrthotics and D.B.S. Medical to drive buying synergies, optimise the
operations of existing clinics, generate cost savings through scale and
improve practice management.

In addition to long-term organic growth, Healthia will focus on the
retention and incentivisation of its clinicians through the Clinician
Retention Program (CRP) to ensure that the interests of clinicians and
shareholders are aligned. Apart from a series of structured education
and training initiatives, the CRP will provide clinicians with the
opportunity to own a portion of the clinic that they work in via Clinic
Class Shares (CCS).

Healthia's IPO expects to start trading on the ASX on 11 September 2018.

The IPO is fully underwritten by Canaccord Genuity (Australia) Limited.

The offer of shares for issue by Healthia Limited is made under a
prospectus lodged with the Australian Securities and Investments
Commission (ASIC) on 31 July 2018. Copies of the prospectus are
available on the IPO website at https://www.healthia.com.au/key-documents/

For further information about Healthia Limited, and the IPO, please
refer to the prospectus. Potential investors should consider the
prospectus in its entirety before deciding whether to buy shares.

About Healthia

Healthia Limited is an integrated group of health-based companies whose
mission is to enrich the lives of people through world-class health
services. The group operates an integrated portfolio of allied health
businesses which include My FootDr, Allsports Physiotherapy, Extend
Rehabilitation, iOrthotics and D.B.S. Medical Supplies.

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