Medical insurer NIB Holdings at bottom of ASX 200 on discounted placement

NIB Holdings

13/10/2022 04:22

(Updates with Citi comments, latest share moves)
    ** Australian medical insurer NIB Holdings Ltd  NHF.AX 
drops as much as 11.3% to A$6.66, posts biggest intraday pct
loss since Aug 23, 2021
    ** Newcastle, NSW-based NHF worst performer on the ASX 200
benchmark index  .AXJO , which is up 0.2% as of 0317 GMT  .AX 
    ** NHF on Wednesday announced A$135 mln ($84.70 mln) 
placement at final issue price of A$6.90 per share - an 8.7%
discount to stock's closing price of A$7.51 on Tuesday, when it
last traded
    ** NHF said it would acquire National Disability Insurance
Scheme (NDIS) plan manager Maple Plan
    ** NHF posted Q1 underlying operating profit of A$64.3 mln,
compared with A$63.8 mln reported last year 
    ** Citi cuts price target to A$7.45 from A$7.80; trims
earnings view by 4%-6% for FY23-25, factoring in 1Q23 results
and capital raise
    ** Sees reported profit of A$204.7 mln in FY23 and A$201.7
mln in FY24, significantly higher than A$135.7 mln logged in
FY22
    ** NHF stock hits lowest level since April 20; up 7.1% this
year, as of last close
($1 = 1.5939 Australian dollars)
 (Reporting by Harish Sridharan and Sameer Manekar in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))