One Health Group [AQSE:OHGR], the Aquis-listed, Sheffield-based healthcare provider raised £8m this month through a conditional placement, open offer and retail offer.
One Health is planning to transition from the Aquis market to AIM, with the intention to commence trading on AIM on 20th March with management saying: “The board considers admission [to AIM] to be in the best interests of the company and its shareholders given the growing scale of the business. The board believe AIM is a more appropriate market for the company and will enable it to attract a wider pool of investors, provide greater access to capital for growth and, over time, improve liquidity in the ordinary shares.”
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The placement, concluded on 19th February, was targeting £7m and raised £7.4m with significant participation from institutional investors. One Health placed £5.2m of new ordinary shares at 180p – a 14.3% discount to the closing price from 18th February – and additionally sold existing shares to directors and the employee benefit trust raising another £2.2m. The company followed this up with an open offer and retail offer. The total fundraising raised around £8m.
Fundraise provides capital to build first surgical hub
As previously reported the new capital has been earmarked to build a surgical hub, which will cost One Health between £8m and £9m, and will be operational, the company said, one-year on from ground-breaking. One Health said that the new facility will generate annual revenues of between £6m and £9m a year, which will enhance earnings in the first full year of operation.
Chief executive, Adam Binns explained that the successful placing and planned AIM admission would position One Health Group strongly to execute its strategy, particularly through the planned investment in surgical hubs. Planning permission for the inaugural hub is anticipated to be submitted shortly, marking a significant milestone in the company’s expansion plans.
One Health has been operating for 20-years providing customers elective surgery and supporting the NHS through a network of community-based outreach clinics and independently managed hospitals. The company’s business model focuses on the NHS’ Patient Choice Initiative by treating patients on NHS elective surgery waiting lists.
One Health listed on AQSE in November 2022 and has seen its revenue and profitability grow sustainably since listing. As pressures on the NHS increase, and the UK Government completes its strategic review of the health sector, more surgeries will be outsourced to specialist consultants like One Health.
One Health move to AIM for deeper liquidity
The company’s move to AIM, although disappointing for Aquis, shows the company’s ambition and may attract more institutional investors. The company is also on the look-out for bolt-on acquisitions, in other areas of healthcare, and the greater liquidity on AIM may allow it to grow its business in the next few years, a good thing for its shareholders.
One Health’s transition to AIM marks a significant step in its growth journey, reflecting its ambition to expand and attract a broader investor base. While its departure from AQSE may be a setback for the exchange, the move underscores the company’s increasing scale and strategic vision. With a solid track record of supporting the NHS and a clear focus on expansion through surgical hubs and potential acquisitions, One Health is well-positioned to capitalize on the growing demand for outsourced healthcare services. Investors will be watching closely as the company embarks on this next phase of its development.
