Occupational health services provider Concentra, a unit of healthcare company Select Medical, is hoping to rake in as much as $585 million in an initial public offering.
Concentra Group Holdings Parent plans to offer 22.5 million shares at a price range of $23 to $26, according to a filing Monday with the U.S. Securities and Exchange Commission (SEC). At the midpoint of the proposed range, Concentra Group Holdings Parent would command a market value of $3.1 billion ,according to some media reports.
Select Medical owns long-term acute care and inpatient rehabilitation hospitals and announced plans at the beginning of the year to spin out Concentra.
Concentra, founded in 1979, says it’s the largest provider of occupational health services to employers in the U.S. with 547 stand-alone occupational health centers in 41 states and 151 onsite health clinics at employer worksites in 37 states. It also operates a telemedicine program serving 43 states and the District of Columbia, according to the SEC filing. The company has 11,000 employees and affiliated physicians and clinicians who provide an extensive suite of services, including occupational and consumer health services and other direct-to-employer care, the company said. Concentra served 50,000 patients each business day on average during 2023.
The company says it partners with approximately 200,000 employers, including 100% of Fortune 100 companies and approximately 95% of the Fortune 500. Since 2015, it has supported the treatment of approximately 6 million occupational injuries.
Concentra Group Holdings Parent booked $1.8 billion in revenue for the 12 months ended March 31, 2024. The company estimates net income of $84 million on $478 million of revenue for the quarter ended June 30, according to a statement.
In the first quarter, the company brought in revenue of $468 million up 2.5% from the same period a year ago.
Select Medical will sell no more than 19.9% of the company’s equity and will maintain at least 80.1% ownership after the IPO.
Concentra will use proceeds of the IPO to repay debt held by Select Medical and will not use the net proceeds for business operations or development, the company said in the filing.
It plans to list on the NYSE under the symbol CON. J.P. Morgan, Goldman Sachs, BofA Securities, Deutsche Bank, Wells Fargo Securities, Mizuho Securities, RBC Capital Markets, and Truist Securities are the joint bookrunners on the deal
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