BrightSpring Health Services, backed by KKR, has set its sights on an approximate valuation of $3.01 billion for its upcoming initial public offering (IPO) in the United States.
This marks a significant milestone for the company, which had initially pursued a public listing in 2021 but faced unfavorable market conditions attributed to the U.S. Federal Reserve’s tightening of monetary policies, leading to the cancellation of its IPO plans in November 2022.
The tide has since turned in favor of BrightSpring and other startups in 2023, as positive market sentiment has been fueled by the prospect of a rate cut by the Federal Reserve in the coming months.
This optimism has encouraged several other firms, including social media platform Reddit, cloud security company Rubrik, and software startup ServiceTitan, to kickstart their own IPO preparations.
In the healthcare sector, Metagenomi, backed by Moderna, is also gearing up for a listing.
BrightSpring aims to offer 53.3 million shares at a price range of $15 to $18 per share, potentially raising up to $960 million.
The majority of these funds will be allocated towards reducing existing debt. The IPO will be managed by a consortium of more than a dozen underwriters, including prominent names like Goldman Sachs, Jefferies, and Morgan Stanley. BrightSpring intends to list on the Nasdaq stock exchange under the ticker symbol “BTSG.”
KKR acquired BrightSpring in a notable $1.32 billion deal in 2019, with a subsidiary of Walgreens Boots Alliance taking a minority stake in the company.
BrightSpring specializes in offering home health, rehabilitation, and hospice care to patients grappling with complex or chronic medical conditions, often requiring extended periods of care.
Additionally, the company operates 180 pharmacies across the United States.
In the publicly-listed healthcare sector, BrightSpring competes with firms such as Amedisys, Encompass Health Corp, and Addus HomeCare Corp.
The stock performances of these competitors have exhibited mixed results this month, with Amedisys registering a slight 0.04% increase in its share price, while Encompass Health Corp saw a notable gain of 7%. In contrast, Addus HomeCare Corp experienced a decline of nearly 4%.
BrightSpring’s journey towards its IPO reflects the dynamic nature of financial markets, where changing economic conditions and investor sentiment can significantly influence the timing and success of such endeavors.