The offering raised $3.78 billion, making it the largest private equity-backed IPO in U.S history.
Demand was strong with 126.2 million shares sold, more than the 124 million originally planned.
“Obviously, they had more than enough buyers, which allowed them to increase the size of the deal,” said John E. Fitzgibbon Jr., founder of the IPO tracking firm IPOScoop.com of Edison, N.J.
HCA offered 87.7 million shares, while certain selling shareholders offered 38.5 million shares. The targeted price range was $27 to $30 per share.
The IPO marks HCA’s return to being publicly traded. Four years ago, the company was taken private through a $33 billion leveraged buyout deal led by private equity firms Kohlberg Kravis Roberts & Co., Bain Capital, and the private equity arm of Bank of America’s Merrill Lynch unit plus relatives of HCA’s co-founder Dr. Tommy Frist Jr.
Fitzgibbon said he spoke with several investors that received fewer shares than they had expected to buy, reflecting the strong demand for the IPO.
HCA’s stock is expected to trade on the New York Stock Exchange under the symbol “HCA.”
Gary Peat, general partner in Nashville-based venture capital firm Council Ventures, said HCA’s return to being publicly traded holds benefits for Middle Tennessee and the health care industry.
“It remains a leader in this community and we should grateful that it’s here and so successful,” he added.
Getahn Ward covers the business of health care for The Tennessean. He can be reached at 615-726-5968 or through e-mail at gward@tennessean.com.
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