Household nameUL Solutions Inc. (ULS Proposed)and nursing home operatorPACS Group (PACS Proposed)share the IPO marquee this week with plans to raise a combined $1.2 billion. Both are New York Stock Exchange listings. Both are profitable companies whose IPOs are set to price this week. These two big IPOs are part of the IPO market’s revival that ramped up in March with the Astera Labs (ALAB) and Reddit (RDDT) IPOs, as Bloombergreported. Early today, digital ad promotions and rewards company Ibotta Inc. (IBTA Proposed) unveiled the terms of its $450.0 million IPO and launched the deal to price next week.
UL Solutions’ IPO is generating some buzz this week. In contrast, PACS Group’s IPO is a healthcare play that’s attracting interest – but not at the same level as UL Solutions’ deal.
Iconic Electrical Safety Brand
The initials “UL”in UL Solutions’ name stands for Underwriters Laboratories, which began testing electrical products for fire risks during the 1894 World’s Fair in Chicago.
“It’s a household name. It’s literally in everyone’s household,” a veteran IPO player says, citing the big brand behind the UL Solutions’ IPO.
The UL Solutions’ IPO is big: 28.0 million shares at a price range of $26.00 to $29.00 to raise $770.0 million, if priced at the $27.50 mid-point. The market cap is estimated at about $5.5 billion, based on mid-point pricing.
UL Solutions’ IPO is set for pricing on Thursday night, April 11, to trade Friday, April 12, on the NYSE.
Goldman Sachs and J.P. Morgan are leading the joint book-runners’ team, which includes BofA Securities, Citigroup, Jefferies and UBS Investment Bank.
UL Solutions, based in the Chicago suburb of Northbrook, provides independent testing, inspection and certification (“TIC”) services and related software and advisory offerings. The company says it served more than 80,000 customers in over 110 countries in 2022.
“We are the owner of the iconic UL-in-a-circle certification mark (“UL Mark”) that appears on billions of products around the world,” UL Solutions says in the prospectus. “We offer our customers global market access services that help them ensure the safety and quality of their products while also supporting their efforts to manage the broader risks they face throughout their product lifecycle processes. We believe our extensive knowledge of, and expertise in, global safety science provides us with a strong competitive advantage relative to other global TIC service providers.”
An Aging Boomers’ Play
The PACS Group IPO benefits from the demographic trend – the aging of the Baby Boomers, who were born in the years from 1946 through 1964.
PACS Group (PACS Proposed), the operator of skilled nursing homes and assisted living facilities in nine states, is set to price its IPO on Wednesday night, April 10, 2024, to trade Thursday, April 11, on the NYSE.
The PACS Group IPO is large: 19.05 million shares at a price range of $20.00 to $22.00 to raise $400.1 million, if the deal is priced at the $21.00 mid-point. The market cap is estimated at $3.1 billion.
Citigroup, J.P. Morgan, Truist Securities and RBC Capital Markets are the joint book-runners.
PACS Group, based in Farmington, Utah, describes itself as “a leading post-acute healthcare company primarily focused on delivering high-quality skilled nursing care through a portfolio of independently operated facilities,” the prospectus says.
“Founded in 2013, we are one of the largest skilled nursing providers in the United States based on number of facilities, with over 200 post-acute care facilities across nine states serving over 20,000 patients daily. We also provide senior care, assisted living, and independent living options in some of our communities.”
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
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