Retirement Village company Ryman Healthcare is raising about $1 billion, which it says will provide a platform for growth.

The offer comprises a $313 million underwritten institutional placement and $688m underwritten pro-rata accelerated non-renounceable entitlement offer.

“The purpose of the offer is to enhance Ryman’s financial position in the current market and provide the platform to achieve improved performance and value for shareholders as market conditions recover,” the company said.

Ryman chair Dean Hamilton said the equity raise would reset the company’s balance sheet, reducing gearing from 37.3% to 23.1%.

The offer would provide Ryman with “the foundations to deliver further transformation initiatives, with a renewed focus on its operational reset