Rural veterinary chain Apiam is preparing for a pre-Christmas stock market debut to help it carve out a bigger share of the healthcare market for livestock.
The Bendigo-based company plans to raise $40 million by offering shares at $1.00 each ahead of its ASX listing on December 17.
Money raised will be used to acquire 12 rural veterinary businesses, which have clinics in 25 locations across the country and employ more than 100 veterinarians.
Chairman Andrew Vizard said Apiam will be a full-integrated company, providing vet services, wholesale animal health products and logistics.
"Our growth strategy is to expand this established business model further into beef cattle and dairy cattle to provide a comprehensive product and service offering to the production animal industry," he said
"In addition, we will consider strategic acquisitions where there is a compelling strategic or financial rationale."
The company was originally founded as a single veterinary practice 1998 by its managing director, Chris Richards, who was focused on the pig industry.
Since then, it has expanded into providing veterinary services, genetics, as well as animal health products.
It aims to provide veterinary services to a little over a third of Australia's pig industry, half of the beef cattle feedlot industry and a quarter of the dairy cattle industry.
"We have significant potential to increase penetration in growing production animal segments, such as grass-fed beef, beef feedlot and dairy farming sectors," Dr Richards said.
The company already services sheep and poultry in the communities it operates in, but will soon expand that to horses and domestic pets too.
Apiam's logistics and wholesaling operations will include four warehouses located in Bendigo, Toowoomba, Welshpool and Smithton, and an 18-vehicle fleet providing deliveries direct to farms.
Dr Richards, who founded the company in 1998, is expected to own 25.7 per cent of the company after he sells 17 million shares in the IPO.
Apiam is forecasting a pro-forma net profit of $7.2 million this financial year.
It plans to start paying dividends to shareholders from the first half of next financial year.
