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· Posted on
February 21, 2024

No more waiting at the counter as Chemist Warehouse prescribes itself a reverse listing on the ASX

Chemist Warehouse is looking likely to list on the ASX via a reverse listing of Sigma Healthcare.

What's the key learning?

  • Chemist Warehouse has had a whole heap of challenges due to ownership restrictions in the pharmacy industry.
  • A reverse listing is a way for a company to get on the stock exchange by going through a back door.
  • By doing this, Chemist Warehouse can bypass the lengthy and complex process of going public.

👉 Background: Chemist Warehouse opened its first store in Melbourne with the idea of turning a pharmacy into a retail experience. Low margin, high volume. And since then, it has grown to over 500 stores in Australia and generated $3.1 billion of revenue in the last financial year.

👉 What happened: Now, Chemist Warehouse is looking likely to list on the ASX via a reverse listing of Sigma Healthcare, of which Chemist Warehouse already owns 10%.

👉 What else: Many investors have been licking their lips about the eventual IPO of Chemist Warehouse. But, Chemist Warehouse has had a whole heap of challenges due to ownership restrictions in the pharmacy industry.

What's the key learning?

💡A reverse listing is a way for a private company to go public. It's a way for a company to get on the stock exchange by going through a back door.

💡 By doing this, Chemist Warehouse can bypass the lengthy and complex process of going public. Think: investor roadshows, investment memorandums and complex listing requirements.

💡It's believed that the new merged company will be valued around $8 billion. Right now, Sigma Healthcare's valuation is around $780 million. So Chemist Warehouse will be the large bulk of the value in this merged entity.

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