Healthcare firm Guardian Pharmacy raises $112 million in US IPO Reuters

(Reuters) – Guardian Pharmacy, which provides pharmacy services to long-term care facilities, raised $112 million in a U.S. initial public offering on Wednesday, valuing the company at $869.3 million.

The Atlanta, Georgia-based firm priced its offering of 8 million Class A common shares at $14 apiece, the low end of its target range of $14 to $16 each.

The US fresh listing market is seeing a return in investor appetite, boosted by expectations of easing monetary policy from the country’s Federal Reserve and market optimism for a soft landing.

Investors have been selective in backing companies, with cash-burners the least favored after a two-year slump in the IPO market that has seen poor performances from high-profile public firms recently.

Guardian Pharmacy, which was established in 2004, offers a suite of technology-based services designed to assist residents in long-term care facilities. As of June 30, it operated 50 pharmacies serving approximately 174,000 residents.

For the full year 2023, Guardian Pharmacy’s revenue rose to $1.05 billion, compared to $908.9 million a year earlier.

More than two-thirds of the company’s annual revenue over the past three years has been generated by residents in assisted living facilities, behavioral health facilities and group homes, the company said in a regulatory filing.

Guardian Pharmacy said the rest of its revenue is generated from residents in skilled nursing facilities.

It posted a net profit of $37.7 million in 2023, up from $49.7 million a year earlier.

The company’s shares will trade on the New York Stock Exchange under the symbol “GRDN”.

Raymond James, Stephens and Truist Securities are the underwriters of the offering.