Capitol Health latest dental IPO

Perth-based Capitol Health Limited (ASX:CAJ) is the latest attempt to corporatise dental surgeries with an Initial Public Offer (IPO) of 9 million ordinary shares at an issue price of 20 cents being snapped up ahead of schedule. The company subsequently listed earlier than expected on the Australian Stock Exchange in early June and at time of going to press was trading at 24 cents.

The 9 million shares sold in the IPO are only 16% of the 56.1 million shares on issue, giving the company a total market capitalisation at listing of over $11 million.

The Company has already acquired two dental surgeries - at Booragoon in Perth and in Fremantle - and is considering other acquisitions.

"This is an outstanding start to our vision of bringing to the national dental sector, the benefits of consolidation already available to other medical and allied health practitioners," Capitol Health's Managing Director, Mr Andrew Harrison, said today. "The two practices generated revenue of over $1.6 million for the year ended 30 June 2005 so we will be cashflow positive at an operational level from our first day on the ASX."

Under the Capitol Health plan, the Company will acquire profitable surgeries and facilities around Australia to allow dentists to continue practising, with Capitol Health providing administrative and management support.