HPR, a Cambridge, Mass.-based maker of software for managing healthcare financial risk, netted $4.5 million in an initial public offering on Aug. 10.
Nearly 1.97 million shares were offered to the public at $16 each. Of the total, 350,000 shares were sold by the company and 1.6 million were sold by company stockholders.
Underwriters have 30 days to purchase additional shares. If that option is exercised in full, the company's net proceeds could increase to $7.3 million.
HPR has three products on the market and two under development. Its 200 customers include managed-care organizations, indemnity insurers, third-party administrators, employers and provider groups.
The company plans to use the money for corporate purposes, including possible acquisitions. However, one of the risk factors noted in HRP's prospectus is the competition it faces for acquisition opportunities, which could increase due to industry consolidation.
Hambrecht & Quist; Alex. Brown & Sons; and Volpe, Welty & Co. served as lead underwriters.
For the year ended June 30, 1995, HPR posted $6.1 million in net income, up 272% from $1.6 million in the year-ago period. The increase largely reflected a one-time gain from the settlement of litigation with GMIS, a Malvern, Pa.-based maker of medical information systems that manage costs and track performance. Revenues rose 30% to $18.3 million.
The company's common shares have traded over the counter in the $17.50 to $19.75 range. On Aug. 11, the first day of trading, the shares closed at $18.13. They are traded under the symbol HPRI.