Tuesday , October 16 2018
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Orion Health to join NZX 50 after latest review, NZOG out

Orion Health Group, the health software developer, will join the benchmark NZX 50 index later this month, ousting energy explorer New Zealand Oil & Gas, after the stock market operator’s latest quarterly review.

Orion will enter the index on March 23, having met ranking and liquidity requirements for index inclusion, NZX said in a statement after the close of trading. The shares fell 1.2 percent to $5.16 today, below its $5.70 initial public offering price in November, and valuing the company at $838 million. Existing shareholders in the software firm held on to about 86 percent of the company during its float, with chief executive and founder Ian Macrae keeping a 50 percent stake.

The software firm’s inclusion comes at the expense of NZOG, which will be removed as the lowest ranking company on the index. The shares fell 3.3 percent to 59 cents today, valuing the company at $205.5 million.

Joining the NZX 50 means institutional investment funds that track indices will have to buy shares in the new company, while exiting their holdings in the departed. The stock market operator reviews the make-up of the benchmark index each quarter.

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