GemLife, a 31.7%-owned associate of Mainboard-listed Thakral Corporation, is considering listing stapled securities related to the GemLife Communities on the Australian Securities Exchange.
GemLife Communities refer to the land lease communities GemLife owns for over 50-year-olds in Australia.
The initial public offering (IPO) is seen as a potential channel to unlock the value of GemLife for its stakeholders, which include Thakral.
In its June 6 announcement, GemLife said it is in “advanced discussions” with potential underwriters for the proposed IPO, although the company warns that there is no assurance or certainty that any agreement will be entered into.
The stapled securities will comprise one fully paid ordinary share in the holding company of the GemLife group and one or more fully paid units in one or more registered schemes by the holding company and the responsible entity of the registered schemes respectively.
A prospectus and product disclosure statement for the proposed IPO will be made when the offer of stapled securities is made.
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On April 7, Thakral issued a clarification announcement following an April 2 article in the Australian Financial Review that said GemLife was testing investors’ appetites for its IPO.
At the time, Thakral said GemLife was considering its “strategic options”, which may include the possibility of an IPO. The group added that it intended to conduct a series of introductory meetings with investors regarding GemLife.
On May 23, Thakral said GemLife had “made progress” in terms of the strategic options including the possibility of an IPO.
Shares in Thakral closed 8 cents lower or 5% down at $1.52 on June 6.
