• TPG, MTS-backed company raises $235 million
• IPO values company at $1.1 billion
• 45 health-focused companies go public this year
Surgical Care raised about $235.2 million after its initial public offering was priced at $24 per share, the higher end of its expected price range of $21-$24.
Of the 9.8 million shares sold, the company offered 7.9 million shares, with the rest coming from shareholders.
Surgical Care’s shares were trading at $27.92 on the Nasdaq on Wednesday morning, after touching a high of $28.53.
The Deerfield, Illinois-based company said it expected to benefit from growing demand for surgical delivery services, which account for 30 percent of medical spending for individuals with commercial insurance.
Surgical Care had 167 ambulatory surgery centers, which provide same-day procedures, five surgical hospitals and one sleep center as of June 30.
The company’s debut is the latest in a series of successful healthcare IPOs in the U.S. markets this year.
About 45 health-focused companies that have gone public this year have raised $7.80 billion, according to accounting and actuarial firm PricewaterhouseCoopers.
Surging equity markets have pushed a number of companies to take the IPO route, boosting total proceeds raised during the third quarter to $11.80 billion from $6.70 billion a year earlier.
Shares of healthcare companies such as Envision Healthcare Holdings Inc, the biggest operator of U.S. ambulance services, and medical supply-chain management company Premier Inc are trading well above their IPO prices.
Surgical Care, which counts private equity firms TPG Funds and MTS among its shareholders, reported revenue of $750.1 million and a loss of $20 million for the year ended Dec. 31, 2012.
J.P. Morgan and Citigroup were the lead underwriters to Surgical Care’s offering.
Neha Dimri is a reporter for Reuters News in Bangalore