(Bloomberg) -- Shares of Concentra, Select Medical Holdings Corp.’s occupational health services provider, slumped 4.3% after the company raised $529 million in an initial public offering priced near the bottom of a marketed range.
Concentra Group Holdings Parent Inc. shares closed at $22.48 apiece on Thursday, below the IPO price of $23.50 each. The company sold 22.5 million shares Wednesday after marketing them for $23 to $26 each.
The trading gives Concentra a market value of about $2.8 billion.
Concentra, based in Mechanicsburg, Pennsylvania, operates 547 standalone occupational health centers in 41 states and 151 on-site health clinics at employer work sites in 37 states. It also offers a telemedicine program serving 43 states and the District of Columbia, according to its filings.
The company estimated that it had income from operations of $84 million on $478 million of revenue during the three months ended June 30, versus income from operations of $82 million on revenue of $467 million in the same period a year earlier, according to a statement.
Proceeds of the offering will be used to repay debt held by Select Medical and won’t be used for business operations or development, according to the filings.
JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. led the offering. Concentra shares are trading on the New York Stock Exchange under the symbol CON.
(Updates with shares in first, second and third paragraphs.)
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