IBA Health raises £58m on Australian stock market

IBA Health, the Australian parent company of iSoft, has launched a funding round on the Australian stock market, seeking to raise up to £58m (AU $124m).

The Sydney-based health IT firm says it will use the additional funding to “reduce debt and take advantage of its position as a global leader in the growing Health IT industry”.

Executive Chairman and CEO, Gary Cohen, said: “The equity raising places IBA in a strong capital position to continue to benefit from investment in health IT by governments worldwide, and the computerisation of healthcare records.”

The company says that the institutional component of the equity raising offer, representing approximately £36.1m (AU $77m), is already fully subscribed with its largest shareholder AEP Financial Services Holdings Pty Ltd committed to the tune of £15m (AU $32m); with the remaining £21.1n (AU $45m) underwritten by ABN AMRO and UBS.

IBA says intends to use the proceeds of the Entitlement Offer to retire subordinated borrowings from AEP and other senior borrowings.

It says the debt reduction “significantly strengthens IBA’s capital position and gearing ratios”, with its gearing ration falling from 45% to 30%.

Following the equity raising the firm says its only remaining bank facility is with ABN AMRO Bank N.V., which matures in August 2011.