Physician-controlled Medicaid managed care plan Molina Healthcare, Long Beach, Calif., has priced its planned initial public offering of stock at $16 to $18 per share, the company disclosed in a regulatory filing Friday.
The company had 511,000 enrollees as of March 31, according to the document filed with the Securities and Exchange Commission. Molina Healthcare operates Medicaid health plans in California, Washington, Michigan and Utah.
Molina Healthcare, headed by President and CEO J. Mario Molina, M.D., will sell 6 million shares to the public at an unspecified time. The offering represents slightly less than one-fourth of the 24.8 million shares that will be outstanding following the IPO, the company says.
The Molina family will retain control of 74.7% of the company.
At a price of $17 per share, the planned IPO would raise $92.4 million for the company after allowing for discounts and commissions to the underwriters, according to the SEC filing.
Molina's father, C. David Molina, M.D., founded the company in 1980. The son succeeded the father in 1996.
Two other physicians are company executives and board members: Executive Vice President for Development M. Martha Bernadett, M.D., and CMO Richard Helmer, M.D. Bernadett is Mario Molina's younger sister.