Nine months after shelving its initial public offering, Iasis Healthcare Corp., Franklin, Tenn., formally withdrew its IPO application from the U.S. Securities and Exchange Commission.
Iasis, founded in 1998 but without a hospital until late 1999, filed plans in January to sell 13.4 million shares, hoping to raise $201 million. After trying to price the offering in early March, Iasis put the sale on hold, citing a weak market and concerns that investors were demanding a steep discount for the shares (April 9, p. 36).
Since then, Iasis has closed its money-losing 118-bed Rocky Mountain Medical Center, Salt Lake City, leaving it owning or operating 14 hospitals. For the year ended Sept. 30, the company lost $29.9 million, or double its $14.7 million loss from the previous fiscal year, on $889.5 million in revenue.
Iasis spokeswoman Eve Hutcherson said the withdrawal filing, dated Dec. 10, was a formality. The company has no plans to go public during the first quarter of 2002 so it made sense to pull the filing, rather than amend it every quarter, she said.
Hutcherson said Iasis still plans to go public and will do so when the market is more agreeable and the company's financial results have improved.