It may be cold out there, but the initial public offering (IPO) market isn’t completely frozen over. BrightSpring, a company providing in-home and community health services, just announced plans for an IPO. Now, investors are likely to watch how this offering performs for clues about further share issuances this year. The company will list on the Nasdaq as BTSG stock and is estimated to start trading on Jan. 26.
According to BrightSpring’s press release, 53.33 million shares of BTSG stock will be issued at a range of between $15 and $18 per share. Final pricing will be released prior to the company’s official listing.
Let’s dive more into what investors can expect from this upcoming IPO.
What to Know About the Upcoming BrightSpring IPO and BTSG Stock
BrightSpring’s initial public offering is expected to provide as much as $960 million of capital, excluding its concurrent offering of tangible equity units (which could bring in around $400 million). The company plans to use these funds to pay down debt and essentially buy out the company’s backer, KKR (NYSE:KKR). Meanwhile, remaining funds will be used for general corporate purposes.
Overall, this deal could net BrightSpring as much as $1.36 billion, if the IPO is priced at the higher end of the range and all options are exercised. As mentioned, investors are likely to pay close attention to how well-subscribed this deal is — and to what investor appetite materializes. A $3 billion valuation is substantial and, given the healthcare nature of the deal, investors will likely take cues about the outlook for this sector from the deal.
BrightSpring’s business model is one that many investors may be intrigued by, too. The company’s focus on home health services for patients with chronic and complex conditions could certainly help it see some stable and consistent growth, given shifting demographic trends. Personally, this is going to be an IPO to which I will be paying attention. I plan on providing more updates in the future.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
