- Hospital operator Ardent Health Services has plans for an initial public offering, according to a registration filing submitted to the Securities and Exchange Commission.
- The Nashville-based company expects to raise $100 million from the offering and will use those funds to repay outstanding debt. The remainder of the proceeds might be used to acquire other healthcare facilities or related business, according to the filing submitted last week.
- Following the IPO, the company will trade under the symbol ARDT.
Globally, the healthcare sector has produced 128 IPOs, outdone only by the technology and industrials sectors in 2018, according to a recent report by Ernst & Young.
"Technology, industrials and health care sectors have been the most prolific producers of IPOs globally in [year to date] 2018, suggesting that investors are striking a balance between new innovation and sticking with the basics," according to the report.
Ardent, which operates 31 acute care hospitals, is nearly $1.3 billion in debt as of Sept. 30, according to the SEC filing.
The company is majority owned by private equity firm, Equity Group Investments, founded by Sam Zell.
The hospital operator generated revenue of $3 billion through the first nine months of the year, ended Sept. 30, and posted a $70 million loss during that same time period.
Ardent's hospitals are mainly scattered throughout the Midwest and the South. Ardent claims the majority of its health systems are either the No. 1 or No. 2 provider in the markets they serve.
Overall, the firm manages more than 4,700 licensed beds and about 36% of its net patient revenue is tied to Medicare.
Going forward, Ardent said its growth strategy is to expand services within its urban markets, pursue strategic acquisitions and joint ventures, improve margins on recent buys and achieve efficiency through scale.