Corrected: UPDATE 2-KKR-backed BrightSpring valued at $2.5 billion on lukewarm debut (Jan 26)
26/01/2024 18:38
(Corrects valuation at debut in headline, paragraph 1 to $2.5
billion, not $2.05 billion)
Jan 26 (Reuters) - Shares of BrightSpring Health
Services BTSG.O , backed by private equity giant KKR KKR.N ,
slipped 7.7% on their market debut on Friday, giving the
community-based healthcare services firm a market capitalization
of $2.5 billion.
The company debuted at $12 per share, below its initial
public offering price (IPO) of $13 apiece.
It raised $633 million by selling about 53.3 million shares
on Thursday.
The lukewarm debut follows a similar reception for Morgan
Stanley Direct Lending Fund MSDL.N and Kazakhstan-based
banking and fintech giant Kaspi.kz KSPI.O , underscoring
investor caution around new listings.
Yet, shares of cancer drug developer CG Oncology CGON.O
surged on their debut on Thursday. Moderna-backed MRNA.O
Metagenomi is another healthcare firm that is gearing up for a
listing this year.
Social media firm Reddit, cloud security company Rubrik and
software startup ServiceTitan are all expected to go public in
2024.
BrightSpring was sold to KKR in a $1.32-billion deal in
2019, with an affiliate of drugstore chain operator Walgreens
Boots Alliance WBA.O taking a minority stake.
The company had previously pursued a listing in 2021, but
hostile market conditions forced it to abort its IPO plans in
November 2022.
BrightSpring provides home health, rehab and hospice care to
patients who often require frequent services over long periods
of time. It also has 180 pharmacies across the United States.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru. Editing by
Pooja Desai and Shilpi Majumdar)
((JaiveerSingh.Shekhawat@thomsonreuters.com;))