Wyuna Partners hired for private hospital equity raise

afr.com:

Hospital operator Wyvern Health has called in Wyuna Partners to round up investors for a $25 million equity raise, Street Talk can reveal.

Proceeds will be used to fund an 85-bed private specialty surgical hospital in Sydney, servicing the Northern Beaches and Ku-ring-gai areas. Wyvern, which is not cash flow positive, is looking for fresh equity to purchase equipment.

Wyvern Health is set to open an 85-bed private speciality hospital in Sydney’s north. 

The asset, which is almost 80 per cent completed, is due to open its doors in October 2024. To date, construction has been funded by the Australian Unity Healthcare Property Trust. Wyvern has a long-term lease, commencing at completion.

In its pitch to investors, seen by Street Talk, Wyvern said northern beaches and upper north shore are areas with high levels of health insurance and in serious need of private hospitals to deliver additional facilities for patients requiring complex surgeries. Wyvern has forecast it will generate strong earnings in FY25 and FY26 and intends to pay dividends out at 60 per cent of earnings per share.

Pricing has been set at $1.25 per share on a pre-money valuation of $18.8 million. Once completed, Wyvern is forecasting 84 per cent of revenue to flow from private health insurers in financial year 2025 and 8 per cent from workers compensation insurers. By speciality, spinal, orthopaedic and vascular procedures will make up the bulk of revenue.

Indicative offers are being called for by early December.