Ryman Healthcare rights offer
Ryman Healthcare (NZX:RYM) has announced a 1-for-2.81 rights offer to raise $902 million (NZD). Learn more about the offer and how to take part through Sharesies.
Offer summary
1-for-2.81Get the right to buy 1 new RYM share at the offer price for every 2.81 you already own.
$5.00 NZDPer share offer price—a 21.9% discount to RYM’s $6.40 NZD closing price on Tuesday 14 February 2023.
14 February 2023Last day to have bought RYM shares to be eligible to receive rights.
Ryman Healthcare is aiming to raise $902 million (NZD) through the offer, and plans to use the money towards:
resetting its capital structure
providing funds to strengthen its balance sheet through the repayment of debt
better enabling the company to execute its growth framework.
To learn more, check out:
A rights offer is one way that a company raises capital (cash).
During a rights offer, a company allocates ‘rights’ to its shareholders, who then have the opportunity to ‘exercise’ those rights to buy more of the company’s shares—usually at a discounted price and in proportion to the amount of shares they already own.
When exercising rights, a shareholder needs to pay the offer price for every right they want to turn into a share—just holding the rights doesn’t mean they’ll automatically turn into shares.
When a rights offer is ‘renounceable’, it means that you can sell your rights to someone else who can use those rights to buy the shares you’re entitled to.
To learn more, read our article on rights offers.
Learn more from Ryman Group CEO Richard Umbers
We sat down with Richard for a chat about Ryman Healthcare, and how it plans to use the funds from the capital raise.
Rights allocation
If you held RYM shares at market close on Tuesday 14 February 2023 through Sharesies, rights will have been allocated to your Portfolio on Monday 20 February 2023 as ‘Ryman Healthcare Rights’.
You’ll have received 1 right for every 2.81 RYM shares you held, each giving you the option to buy 1 new RYM share at a set price of $5.00 NZD per share. If you held a fractional amount of RYM shares, you’ll have been allocated a proportional amount of rights.
Any RYM shares bought after Tuesday 14 February 2023 through Sharesies were not eligible to receive rights.
If you don’t hold rights, you may still be able to take part in the offer by buying rights (NZX:RYMRA) then exercising them, and applying for shares in the retail shortfall offer.
How to take part
Each right gives you the option to buy 1 new RYM share at a set price of $5.00 NZD per share. In other words—for every right that you apply to exercise, you’ll pay $5.00 NZD for 1 new RYM share.
Exercise some (or all) of your rights
Go to ‘Ryman Healthcare Rights’ in your Portfolio, and select Exercise, buy, or sell.
You’ll need to have enough money in your Wallet to pay the per share offer price at the time that you exercise. If you need to exchange money to pay the exercise price, you’ll also be charged a currency exchange fee.
If you exercise your rights, Ryman is expected to allocate the shares you’re buying on Tuesday 14 March 2023.
Unexercised rights
For any rights that you haven’t exercised by 2 PM on Monday 6 March 2023, the shares they would’ve entitled you to will become available for other investors to buy in the retail shortfall offer.
If this happens:
you may or may not receive some value for your rights
your existing shareholding will be diluted (meaning each share you hold will represent a smaller proportion of ownership in the company than before the offer).
Exercise period on Sharesies
Monday 20 February 2023 to 2 PM on Monday 6 March 2023
Fees
You won’t be charged the Sharesies transaction fee to exercise your rights, but you may be charged currency exchange fees if you need to exchange money to pay the exercise price.
You can sell any rights for RYM shares you hold through Sharesies for NZD. Whether or not your order to sell rights will fill (and how long it might take), will depend on how many buyers and sellers there are for Ryman Healthcare Rights.
Sell some (or all) of your rights
Go to ‘Ryman Healthcare Rights’ in your Portfolio, and select Exercise, buy, or sell.
Unsold rights
Any rights you choose not to sell before the rights trading period ends on Tuesday 28 February 2023 can still be exercised until 2 PM on Monday 6 March 2023. For more info about exercising rights, see the ‘exercising rights’ section above.
Rights trading period through Sharesies
Monday 20 February 2023 to 5 PM on Tuesday 28 February 2023
Fees
Unless covered by a monthly plan, you’ll be charged the 1.9% transaction fee (up to the per order fee caps) to sell RYM rights, and you may be charged currency exchange fees if you need to exchange money.
Rights for RYM shares are listed on the NZX with the symbol RYMRA, and you can buy them through Sharesies in NZD.
Buy rights
Go to ‘Ryman Healthcare Rights’ in Sharesies, and select Exercise, buy, or sell.
Once you’ve bought rights for RYM shares, you have the option to:
exercise some (or all) of them
sell some (or all) of them
do nothing with them.
Keep in mind that if you’re buying rights, you’ll need to apply to exercise them at the offer price of $5.00 NZD per share to take part in the offer. For more info about exercising rights, see the ‘exercising rights’ section above.
For any rights that you haven’t exercised by 2 PM on Monday 6 March 2023, the shares they would’ve entitled you to will become available for other investors to buy in the retail shortfall offer. If this happens, you may or may not receive some value for your rights.
Rights trading period through Sharesies
Monday 20 February 2023 to 5 PM on Tuesday 28 February 2023
Fees
Unless covered by a monthly plan, you’ll be charged the 1.9% transaction fee (up to the per order fee caps) to buy RYM rights, and you may be charged currency exchange fees if you need to exchange money.
The retail shortfall offer gives investors the opportunity to apply to buy RYM shares that weren’t taken up through the rights offer.
The price of RYM shares through the retail shortfall offer will be determined by a book building approach, and will be equal to or above $5.00 NZD per share for RYM shares.
The offer could be scaled—this means if there’s more interest in the retail shortfall offer than shares available, you may receive fewer or none of the shares that you apply for.
There are two ways you can apply to take part in the retail shortfall offer through Sharesies—as a RYM shareholder or as a general investor.
The same price will apply whether you’re applying as a RYM shareholder or as a general investor. It may be higher or lower than the price that shares are trading at on the NZX.
You can apply for the retail shortfall offer as a Ryman Healthcare shareholder if you were allocated rights on Monday 20 February 2023. You’ll need to have exercised all of your allocated rights by 2 PM on Monday 6 March 2023 before applying.
If you haven’t exercised all of your rights by then, and apply for more shares through this offer, your application might be cancelled.
If you apply as a RYM shareholder and the offer is scaled, you might be scaled more beneficially than if you applied as a general investor.
To apply for the retail shortfall offer, go to your Ryman Healthcare Rights in Sharesies, select ‘Buy’, and choose ‘Apply for retail shortfall offer as a RYM shareholder’.
You’ll need to specify a dollar amount of RYM shares you’d like to buy, and have enough money in your Wallet at the time of your application.
If the price of RYM shares determined through the retail shortfall offer ends up being higher than the price of RYM shares on the NZX at market close on Tuesday 7 March 2023, you won’t receive any new shares through the retail shortfall offer (as it might be cheaper for you to buy shares on-market). You’ll be refunded any money not used for your application.
You can apply to take part in the retail shortfall offer as an existing RYM shareholder through Sharesies from now until 2 PM Monday 6 March 2023. You may cancel or edit your application up until then.
All investors on Sharesies with a registered address in NZ can apply for the retail shortfall offer as a general investor—including RYM shareholders.
You’ll need to give the highest price you’re willing to pay per share, and choose the maximum amount of money to spend. You’ll need to have enough money in your Wallet at the time of your application.
To apply for the retail shortfall offer, go to Ryman Healthcare in Sharesies, select ‘Buy’, and choose ‘Apply for retail shortfall offer as a general investor’.
You can apply to take part in the retail shortfall offer as a general investor through Sharesies from now until 4 PM Wednesday 8 March 2023. You may cancel your application up until then.
To take part in this offer as a new investor in Ryman Healthcare through Sharesies, you need to have a registered address in NZ. You can’t take part if you’re based outside of NZ, or you’re acting on behalf of a person based outside NZ.
Offer period on Sharesies
Applying as a RYM shareholder — Monday 20 February 2023 to 2 PM Monday 6 March 2023
Applying as a general investor — Monday 20 February 2023 to 4 PM Wednesday 8 March 2023
Fees
You won’t be charged the Sharesies transaction fee to buy shares through the shareholder shortfall offer, but you may be charged currency exchange fees if you need to exchange money.
Ryman Healthcare’s institutional shortfall offer gave investors the opportunity to apply to buy RYM shares at a discounted price. It closed at 4 PM on Thursday 16 February 2023.
The price of RYM shares issued through the institutional offer was $6.00 NZD per share—it was determined by a book building approach.
If you applied for shares in the institutional shortfall offer, we’ll be in touch to let you know whether or not your application was successful.
Ryman Healthcare expects to allocate new shares from the institutional shortfall offer on Friday 24 February 2023.
Offer period on Sharesies
Wednesday 15 February 2023 to 4 PM Thursday 16 February 2023
Fees
You weren't charged the Sharesies transaction fee to buy shares through the institutional shortfall offer, but you may have been charged currency exchange fees if you needed to exchange money.
Key dates
Event | Date |
|---|---|
Last day to buy RYM shares to be eligible to be allocated rights | Tuesday 14 February 2023 |
Record date for the offer | Friday 17 February 2023 |
Rights appear in Sharesies Portfolios | Monday 20 February 2023 |
Rights exercise period opens | Monday 20 February 2023 |
Rights trading opens on Sharesies | Monday 20 February 2023 |
Rights trading closes on Sharesies | 5 PM Tuesday 28 February 2023 |
Applications for exercising rights closes through Sharesies | 2 PM Monday 6 March 2023 |
Ryman Healthcare expected to allocate new shares | Tuesday 14 March 2023 |
New shares expected to start trading on the NZX | Tuesday 14 March 2023 |
Refunds and premiums paid from retail shortfall offer (if any) | By Monday 20 March 2023 |
Retail shortfall offer
Event | Date |
|---|---|
Applications for retail shortfall offer open through Sharesies | Monday 20 February 2023 |
Shareholder applications for retail shortfall offer close through Sharesies | 2 PM Monday 6 March 2023 |
General investor applications for retail shortfall offer close through Sharesies | 4 PM Wednesday 8 March 2023 |
Ryman Healthcare expected to allocate new shares from retail shortfall offer | Tuesday 14 March 2023 |
Institutional shortfall offer
Event | Date |
|---|---|
Applications for institutional shortfall offer through Sharesies | Wednesday 15 February 2023 to 4 PM Thursday 16 February 2023 |
Ryman Healthcare expected to allocate new shares from institutional shortfall offer | Friday 24 February 2023 |
Before taking part
All investing involves risk—you aren’t guaranteed to make money, and you might lose the money you start with.
We encourage you to do your due diligence, consider the risks involved, and speak to a licensed financial advice provider if you need help deciding whether to take part.
For some things to consider before taking part, check out the FMA’s guide to taking part in a rights issue.
And now for the legal bit
Sharesies is not responsible for the offer and Sharesies can’t offer any financial advice on whether or not you should take part in this offer.
When taking part through Sharesies, the Sharesies General Terms and Conditions apply (with necessary changes to accommodate this rights offer) and the definition of shares extends to rights. Fees may apply for use of the platform provided by Sharesies Limited. Sharesies will be paid a fee from Ryman Healthcare for distributing this offer to Sharesies investors.
The information provided is not financial advice and has been prepared without taking into account your objectives, financial situation, or needs. Speak to a licensed financial advice provider for advice specific to your circumstances.
