Healthcare Firm Concentra Targets $3.3 Bn Valuation in US IPO

It plans to sell 22.50 million shares, priced between $23 and $26 each, potentially raising up to $585 million, according to a regulatory filing.

Concentra Group, a division of Select Medical, has targeted a valuation of $3.30 billion for its US initial public offering (IPO), marking a notable entry into the market after nearly two years of subdued activity.

The occupational health services provider plans to sell 22.50 million shares, priced between $23 and $26 each, potentially raising up to $585 million, according to a regulatory filing on Monday.

Founded in 1979, Concentra is recognized as the largest provider of occupational health services in the United States by the number of locations. It offers a range of services including occupational medicine, urgent care, physical therapy, and drug screening.

The company operates 540 medical centers and 140 onsite clinics nationwide and also provides telemedicine services for work-related health issues.

The US IPO market is showing signs of recovery as stock markets reach record highs. This environment has encouraged companies such as Concentra to proceed with their listings.

Earlier this year, Select Medical announced plans to separate Concentra, aiming to establish two independent, publicly traded companies.

Concentra is set to list on the New York Stock Exchange (NYSE) under the ticker symbol "CON."

Reportedly, JP Morgan, Goldman Sachs, and BofA Securities are leading the underwriting for this offering.

Recent Indian Healthcare IPOs

The year 2024 has witnessed significant activity in the Indian healthcare sector, with several major companies opting for public offerings.

Among these, Healthtech firm Indegene's IPO stood out, being subscribed 69.71 times by the closing day of bidding on May 8. The INR 1,841.75 Cr IPO opened for subscription on May 6, 2024, and received bids for 2,01,22,03,281 shares against the 2,88,66,677 shares on offer, as per NSE data.

Another prominent IPO this year was from Emcure Pharmaceuticals, which saw strong demand from non-institutional investors, achieving full subscription by the latter half of the first day. As of June 3, the IPO had been subscribed 1.22 times in the retail category and 1.92 times in the non-institutional investor (NII) portion.

In June, Nephrocare India (NCIL), a multi-specialty healthcare provider backed by industry veteran Deepak Parekh, announced plans to raise approximately INR 40 Cr through an IPO to support its expansion goals. The funds were expected to be primarily used to establish a new multi-specialty hospital in Madhyamgram, Kolkata, along with other general corporate purposes.