Thakral Corporation’s Australian investee company GemLife has debuted on the Australian Stock Exchange (ASX) with its debut price increasing 4.1% to A$4.33 ($3.62) on the first day of trading.
The lifestyle and resorts company’s trading volume for its first day came in at 9.12 million, with a market capitalization of A$1.65 billion.
GemLife, which Thakral owns a 31.7% effective interest in, raised A$750 million in its IPO, Australia’s biggest listing this year. The post money valuation of the IPO is A$1.58 billion, fully underwritten by J.P. Morgan and Morgan Stanley.
GemLife says that it plans to deploy proceeds from the IPO to support its ongoing growth, including the acquisition of the Aliria Group portfolio which it expects to increase its pipeline from about 6,500 homes to 9,836 homes. The funds will also be utilised towards reducing debt, strengthening the balance sheet, and as additional working capital.
Thakral subscribed an additional 600,962 GemLife Stapled Securities at the IPO price, resulting in an effective interest of 16.8% post-dilution.
“GemLife’s successful ASX listing represents the realisation of a strategic vision we have supported since inception. We’re pleased to witness such strong investor support for GemLife, which speaks to the market’s recognition of its leadership in the over-50s lifestyle space,” says Inderbethal Singh Thakral, CEO and executive director of Thakral.
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Shares in Thakral closed 7 cents lower or 4.667% down at $1.43 on July 3.
