(Reuters) - Guardian Pharmacy, which provides pharmacy services to long-term healthcare facilities, raised $112 million in its U.S. initial public offering on Wednesday, valuing the company at about $852 million.
The Atlanta, Georgia-based firm priced its offering of 8 million shares of Class A common stock at $14 apiece, the low-end of its targeted range of $14 to $16 each.
The U.S. market for fresh listings is seeing a recovery in investor appetite, boosted by expectations of monetary policy easing by the country's Federal Reserve and market optimism for a soft landing.
Investors have been selective in backing companies, with those burning cash as least favored, after a two-year IPO market downturn that saw poor performance from a raft of recently public high-profile firms.
Guardian Pharmacy, which was founded in 2004, offers a suite of technology-enabled services designed to help residents of long-term health care facilities. It was operating 50 pharmacies serving roughly 174,000 residents, as of June 30.
For the full-year 2023, Guardian Pharmacy's revenue rose to $1.05 billion, compared with $908.9 million a year earlier.
More than two-thirds of the company's annual revenue over the past three years has been generated from residents in assisted living facilities, behavioral health facilities and group homes, the company said in a regulatory filing.
Guardian Pharmacy said the remainder of the revenue is generated from residents of skilled nursing facilities.
It turned a net profit of $37.7 million in 2023 versus $49.7 million a year earlier.
The company's shares will trade on the New York Stock Exchange under the ticker symbol "GRDN."
Raymond James, Stephens and Truist Securities are the underwriters of the offering.
(This story has been corrected to say that the company's valuation is about $852 million, not $869.3 million, in paragraph 1)