Will Chemist Warehouse be listed on ASX?


Chemist Warehouse
Image by Francisco Anzola https://www.flickr.com/photos/fran001/

The discount pharmacy chain has been reportedly meeting with fund managers and investment bankers in recent months

With Chemist Warehouse reportedly spending increasing face-to-face time meeting with fund managers and investment bankers, reporters from the Australian Financial Review Street Talk column suggest this may point to “a potential run at the ASX-boards”.

“While the company itself refuses to rule anything in or out – telling Street Talk ‘we are always out and about and talking about the business’ – Chemist Warehouse appears to have had a change of heart on the public engagement front,” reports AFR.

They point to Chemist Warehouse’s expansion to New Zealand, and co-founder and group commercial manager Damien Gance telling suppliers earlier this month that Chemist Warehouse pharmacies make more retail sales per square metre than Woolworths.

“Street Talk can also reveal that Chemist Warehouse has formally put to tender its major wholesale supply contract, which is currently held by Sigma Healthcare.”

Read more at the AFR here.

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3 Comments

  1. William
    20/11/2017

    Now here is an opportunity for all the critics of CH model to take up shares and get involved. If it occurs of course.

  2. Bruce ANNABEL
    20/11/2017

    Chemist Warehouse leadership is the epitome of doing their job well ie: continually seeking new opportunities, improving and finding new ways of doing business. A potential IPO of the management structure would be one option they could consider if the owners are looking to get some cash out or raise equity capital for expansion elsewhere. However, given the success of Ramsay Healthcare, an ASX listed health services corporation, in successfully weaving their way through the state regulatory requirements in ‘acquiring’ 55 community pharmacies they may be tempted to think more broadly. Of course being a public entity isn’t all it’s cracked up to be and entails several negatives so there must be very good reasons to contemplate such a decision in the first place. The question is whether CWH needs to and what would they gain?
    In the meantime I was in Auckland last week where CWH had just opened their first store in the suburb of St Lukes with another 10 sites planned in Auckland, Wellington and Christchurch according to an Auckland newspaper. The article suggested the group is the 6th biggest retailer in Australia (which isn’t correct) and is worth $5bn. Their prices I understand are significantly cheaper than traditional NZ pharmacies which may precipitate an Uber like disruptive impact on their OTC/retail profits necessary to augment modest dispensing profitability which is only about one third that of their Australian cousins.

  3. Stephen Roberts
    20/11/2017

    Excellent – All my pharmacy mates & I will buy a truckload of shares in any IPO.

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