Software maker Evolent Health’s IPO priced at $17/share, says underwriter-Reuters

(Reuters) Evolent Health Inc’s initial public offering has been priced at $17 per share, an underwriter told Reuters late on Thursday, valuing the healthcare software maker at about $950 million.

The company’s IPO raised about $195.5 million at that price, which was above its expected range of $14-$16.

The Arlington, Virginia-based company, which is selling all the class A shares in the offering, raised the offering size to 11.5 million shares from 10 million.

Evolent, which ranks 12th on Forbes’ list of America’s Most Promising Companies, makes software for hospitals that are transitioning to new fee systems, in which doctors are paid for keeping patients healthy rather than for treating them once they get sick.

Evolent was founded in 2011 by its top two investors, the University of Pittsburgh Medical Center and healthcare research firm Advisory Board Co.

Shares of Evolent, which is 6 percent-owned by the growth arm of private equity firm TPG, are expected to begin trading on Friday under the symbol “EVH” on the New York Stock Exchange.

JPMorgan, Goldman Sachs and Wells Fargo Securities are among the major underwriters for the IPO.