US post-acute healthcare provider PACS Group has filed a formal IPO application with the US Securities and Exchange Commission (SEC) for an estimated value of USD 500 million. The official completion of the preparatory process is estimated for the end of 2024.
About PACS Group
Founded in 2013, PACS Group is now one of the largest skilled nursing care providers in the U.S. with more than 200 post-acute care centers in 9 U.S. states serving more than 20,000 patients daily.
For the year 2023, it achieved revenues of $3.1 billion, an increase of nearly 29% from $2.42 billion in 2022. Of this, profit for 2023 was $112.87 million.
One of the company’s core values is continued growth, both organically and through additional acquisitions in existing and new markets. Currently, the company has 66 new resorts and 77 resorts purchased in the last 18 to 36 months that have high growth potential.
“We believe our success is due in large part to our decentralized, local operating model, which allows local leaders at each center to independently manage their sites and provide our patients with superior clinical services and an excellent experience,” company officials wrote in documents filed with the SEC.
What do we know about the IPO of PACS Group?
PACS Group plans to list on the New York Stock Exchange (NYSE) as early as the end of 2024, having filed a confidential application to join the exchange on December 8, 2023 and a formal application to the SEC and the exchange last week on March 13, 2024. It has selected Citigroup, J.P. Morgan, Truist Securities and RBC Capital Markets as co-sponsors for its initial public offering.
Specific numbers, such as the price per share, are not yet known, but based on last week’s figures, it’s planning to raise at least $100 million. Analysts at Renaissance Capital not only agree on the realism of this amount, but also believe that the IPO will raise up to USD 500 million.
