NEW YORK (Reuters) – Healthcare revenue management company Accretive Health Inc (AH.N) priced shares in its initial public offering below the expected range on Wednesday.
The Chicago, Illinois-based company sold 10 million shares for $12 each, raising about $120 million. It had planned to sell 13.33 million shares for $14 to $16 each.
Accretive Health helps U.S. healthcare companies manage patient registration, insurance and benefits verification, medical treatment documentation, coding and billing.
The company posted net services revenue of $125.94 million in the three months ended March 31, up 12 percent from a year earlier. It swung to a $314,000 profit from a $638,000 loss.
A single customer, Catholic nonprofit healthcare company Ascension Health, accounted for about 60 percent of its net services revenue.
Accretive Health said it would use proceeds from the IPO to pay preferred stock liquidation preferences and for general purposes.
Underwriters were led by Goldman Sachs & Co and Credit Suisse. The shares are expected to begin trading on the New York Stock Exchange on Thursday under the symbol “AH.” (Reporting by Clare Baldwin; Additional reporting by Ilaina Jonas; Editing by Gary Hill)
peHUB Note: Oak Hill Capital Partners held a 21.7% pre-IPO ownership position in Accretive Health.