Surgery Partners, Inc. (SGRY) is scheduled to make an Initial Public Offering on
ID: 2613250 • Letter: S
Question
Surgery Partners, Inc. (SGRY) is scheduled to make an Initial Public Offering on September 28, 2015 on NASDAQ of 14.3 million shares at an estimated price of $23-$26. Read through the S1/A report and provide a two-page (~500 words) summary of the company, strengths, weaknesses, competition and growth potential (or not). At the end of you summary provide an analyst rating: Strong Buy (1); Moderate Buy (2); Hold (3); Moderate Sell (4); and Strong Sell (5).
S1/A: http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=10429809
Explanation / Answer
Surgical center manager Surgery Partners Inc's initial public offering was priced at $23-$26 per share, valuing the company at up to $1.25 billion.according to its filing with the U.S. Securities and Exchange Commission. The offering is expected to be priced Thursday night for trading Friday."The sector has been doing very well and what the IPO market is about is sector to sector," Fitzgibbon said.
The company is selling 14.3 million common shares in the IPO and expects to raise 324.9 million at the mid-point of the range, according to its regulatory filing.
Surgery Partners competes with Surgical Care Affiliates (SCAI) and AmSurg (AMSG).
Surgery Partners, which was founded in 2004 and booked $713 million in sales for the 12 months ended June 30, 2015, plans to list on the Nasdaq under the symbol SGRY. BofA Merrill Lynch, Goldman Sachs, Jefferies, Citi, Morgan Stanley, Credit Suisse, Raymond James and RBC Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of September 28, 2015.
The Nashville, Tennessee-based company, owned by H.I.G Capital LLC, operates 94 ambulatory surgery centers and five hospitals in 28 states. Patients can receive services including anesthesia, diagnostics and radiation oncology at these centers.
Reuters reported in March that Surgery Partners was preparing for a summer IPO.
Surgery Partners' competitors include Surgical Care Affiliates Inc, AmSurg Corp and United Surgical Partners International, which recently struck a merger deal with Tenet Healthcare Corp.
H.I.G. Capital, which currently owns more than 80 percent stake in the company, bought Surgery Partners in 2010 for an undisclosed amount. It later bought surgery center operator NovaMed for $214 million and merged the businesses.
Last November, Surgery Partners acquired Symbion Holdings Corp, owned by Crestview Partners, for $792 million.
BofA Merrill Lynch, Goldman Sachs, Jefferies, Citigroup and Morgan Stanley are among those underwriting the IPO. The stock is expected to list on the Nasdaq under the symbol "SGRY".
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