PACS Group, Inc. Announces Pricing of Its Upsized Initial Public Offering

Rhea-AI Summary

PACS Group, Inc. announces the pricing of its upsized initial public offering, with 21,428,572 shares of common stock sold at $21.00 per share, raising approximately $450 million. The offering includes a 30-day option for additional shares. The stock will trade on NYSE under the ticker symbol 'PACS'. Citigroup, J.P. Morgan, and Truist Securities are lead managers. The offering is expected to close on April 15, 2024.

Financial Analyst

The initial public offering (IPO) of PACS Group, Inc. reflects a significant capital market event, with the company raising approximately $450 million through the sale of 21,428,572 shares at $21.00 each. This sizeable IPO, particularly being upsized, suggests robust investor interest and confidence in the company's future prospects. The underwriters' option to purchase additional shares could potentially raise more capital, indicating a strong backing by financial institutions. However, investors should consider the dilutive effect of this additional share option on existing share value.

It's important to analyze the valuation implied by the IPO price, which can be compared to industry multiples and growth prospects. The use of proceeds is also important to understanding the company's strategy. Since PACS will not benefit from the sale of shares by selling stockholders, the focus should be on how the company plans to utilize the $450 million in fostering growth, research and development, or debt reduction.

Furthermore, the involvement of high-profile underwriters and their role in the offering may lend credibility to the IPO and could potentially impact the stock's performance post-listing. Investors should monitor post-IPO price action to gauge market sentiment and the stock's near-term trajectory.

Market Research Analyst

The entrance of PACS Group, Inc. on the New York Stock Exchange introduces a new player into the market, which could disrupt existing industry dynamics. The pricing of the IPO at $21.00 per share provides a benchmark for the company's market valuation and sets expectations for future performance. Market participants will be keen to observe the stock's liquidity and volatility in the days following the listing.

Assessing the company's competitive position within its industry, its growth strategy and the strength of its management team will be essential for investors. The fact that the IPO was upsized may indicate stronger than expected demand or confidence in the company's growth narrative. However, it is also vital to scrutinize the company's financials and risk factors disclosed in the prospectus.

The performance of PACS's stock could serve as a barometer for investor appetite for new listings and may influence the IPO market's temperature for similar companies. The role of the co-managers and their influence on the distribution of shares to institutional versus retail investors could also affect the stock's stability and long-term performance.

FARMINGTON, Utah--(BUSINESS WIRE)-- PACS Group, Inc. (“PACS” or the “Company”) today announced the pricing of its upsized initial public offering of 21,428,572 shares of its common stock being sold by the Company at a public offering price of $21.00 per share, for total gross proceeds of approximately $450 million, before deducting underwriting discounts and commissions and offering expenses. In addition, certain selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 3,214,284 shares of the Company’s common stock at the initial public offering price, less underwriting discounts and commissions. PACS will not receive any proceeds from any sale of shares by the selling stockholders. The shares are expected to begin trading on the New York Stock Exchange on April 11, 2024, under the ticker symbol “PACS.” The offering is expected to close on April 15, 2024, subject to customary closing conditions.

Citigroup, J.P. Morgan and Truist Securities are acting as lead book-running managers for the offering. RBC Capital Markets and Goldman Sachs & Co. LLC are acting as joint book-running managers. Stephens Inc., KeyBanc Capital Markets, Oppenheimer & Co. and Regions Securities LLC are acting as co-manager.

A registration statement relating to the securities was declared effective by the U.S. Securities and Exchange Commission. This offering is being made only by means of a prospectus, copies of which may be obtained, when available, from: Citigroup Global Markets Inc. at 388 Greenwich Street, New York, New York 10013, Attention: General Counsel, facsimile number: +1 (646) 291-1469; J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, Attention: Equity Syndicate Desk, facsimile number: +1 (212) 622-8358; and Truist Securities, Inc. at 3333 Peachtree Road NE, 11th Floor, Atlanta, GA 30326, Attention: Equity Capital Markets, facsimile number: (404) 816-8535.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About PACS Group, Inc.

PACS is a holding company investing in post-acute healthcare facilities, professionals, and ancillary services. Founded in 2013, PACS is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate over 200 post-acute care facilities across nine states serving over 20,000 patients daily.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240410079819/en/

Brooks Stevenson

VP Corporate Communications

(801) 597-9538

Brooks.Stevenson@pacs.com

Source: PACS Group, Inc.

FAQ

What is the total gross proceeds from PACS Group, Inc.'s initial public offering?

The total gross proceeds from PACS Group, Inc.'s initial public offering are approximately $450 million.

When are the shares of PACS Group, Inc. expected to begin trading on the New York Stock Exchange?

The shares of PACS Group, Inc. are expected to begin trading on the New York Stock Exchange on April 11, 2024.

Which companies are acting as lead book-running managers for PACS Group, Inc.'s offering?

Citigroup, J.P. Morgan, and Truist Securities are acting as lead book-running managers for PACS Group, Inc.'s offering.

What is the ticker symbol under which PACS Group, Inc.'s stock will trade on the NYSE?

PACS Group, Inc.'s stock will trade on the New York Stock Exchange under the ticker symbol 'PACS'.

When is the expected closing date for PACS Group, Inc.'s offering?

The offering for PACS Group, Inc. is expected to close on April 15, 2024.