KKR-backed BrightSpring Health Services has set a target valuation of around $3.01 billion for its long-awaited initial public offering in the United States. The company, specializing in providing care to patients with complex or chronic medical conditions, is moving forward with the listing after previously aborting the attempt in 2021 due to unfavorable market conditions resulting from the U.S. Federal Reserve’s monetary policy tightening.
The positive market sentiment in 2023, driven by hopes of a rate cut by the Fed in the coming months, has encouraged more startups to initiate listing procedures. Other companies, including social media firm Reddit, cloud security company Rubrik, software startup ServiceTitan, and healthcare sector player Moderna-backed Metagenomi, are also gearing up for public listings in 2024.
BrightSpring intends to sell 53.3 million shares at a price range of $15 to $18 each, aiming to raise up to $960 million. The majority of the proceeds will be utilized to pay down debt. The IPO is being managed by over a dozen underwriters, including Goldman Sachs, Jefferies, and Morgan Stanley, with the company seeking to list on Nasdaq under the symbol ‘BTSG’.
Acquired by private equity giant KKR in a $1.32 billion deal in 2019, BrightSpring also saw an affiliate of drugstore chain operator Walgreens Boots Alliance (NASDAQ:WBA) taking a minority stake. The company offers home health, rehab, and hospice care to patients, with a network of 180 pharmacies across the country. Publicly-listed competitors include Amedisys (NASDAQ:AMED), Encompass Health (NYSE:EHC) Corp, and Addus HomeCare Corp.
As the company prepares for its IPO, the stock performance of its rivals has shown mixed results. Amedisys shares inched up 0.04%, while Encompass’ stock gained 7%. Conversely, Addus HomeCare witnessed a nearly 4% decline.
