"Southern Cross will be the largest care-home operator on the London exchange," says non-executive chairman Bill Colvin. Since it was bought by the American private-equity firm Blackstone Capital Partners for euro 236.87 million ($298.94 million) in 2004, Southern Cross has expanded rapidly, tripling the number of homes it manages in an attempt to cash in on rising government healthcare spending and an aging UK population.

At the same time as the company offers a tranche of new shares, Blackstone plans to sell about half of its 88% stake in Southern Cross but will remain the company's largest investor. The UK healthcare market is currently consolidating and Southern Cross intends to use the cash raised to expand via acquisitions. Last year it bought Highfield Care for euro 17.11 ($21.59 billion).

The government changed the financing of care in the mid-1990s by transferring funding for nursing homes to local councils. The local authorities ran out of money, care-home operators found themselves with too many empty beds and a number went bankrupt.