Physician-controlled Medicaid managed care plan Molina Healthcare, Long Beach, Calif., is having a strong first day of trading on the New York Stock Exchange after raising an estimated $107 million in net proceeds from its initial public offering.
By 1:20 p.m. EDT Wednesday, Molina shares had climbed $3, or about 17%, from the IPO price of $17.50, giving the company a market capitalization of more than $508 million.
Molina issued 6.6 million shares, or slightly less than one-fourth of the company, at $17.50 per share, on the high end of the previously stated $16-to-$18 IPO range, to raise $115.5 million. The health insurer says it will take in about $107 million after commissions and underwriting fees.
The company originally planned to sell just 6 million shares.
Molina Healthcare is headed by President and CEO J. Mario Molina, M.D., whose father, also a physician, founded the company in 1986.
Executive Vice President for Development M. Martha Bernadett, M.D., and CMO Richard Helmer, M.D., also are physician board members. Bernadett is the sister of the CEO and daughter of founder C. David Molina, M.D.
Molina Healthcare serves 511,000 enrollees in Medicaid plans in California, Washington, Michigan and Utah.