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HealthEngine presses pause on IPO

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Medical appointments booking platform HealthEngine’s float has stalled, and is no longer poised to come to market before Christmas.

The business, which had been holding cornerstone meetings in mid-October, had been struggling to set a valuation, with fund managers and the company not aligning on the price.

HealthEngine’s Marcus Tan has pressed pause on its float plans. 

The business, which had RBC Capital Markets and Bell Potter acting as joint lead managers, is understood to still be interested in raising growth capital, but whether that’s in the form of a listing, or via private markets is now up in the air.

The business had been looking to raise around $100 million, with a chunk no doubt designated to pay down early investors like Seven West Media.

It’s understood fund managers were pushing the business toward a $120 million-odd valuation, but this was substantially lower than it had been hoping.

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Now, it’s likely to either return in the new year with fresh figures to present to institutions to support its high growth post-COVID-19, or look at alternative funding arrangements.

The company had unveiled positive first quarter trading data as part of its investor discussions, with numbers from July and August pointing to revenue of $5.1 million for the first three months of the 2022 financial year, up 42 per cent on the previous corresponding period.

Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
Yolanda Redrup is the co-editor of the AFR Rich List. She previously reported on technology, healthcare and Street Talk. Connect with Yolanda on Twitter. Email Yolanda at yolanda.redrup@afr.com
Kanika Sood is a journalist based in Sydney who writes for the Street Talk column. Email Kanika at kanika.sood@afr.com.au

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