The sharp moves seen in the stock market in recent weeks havent stopped two healthcare providersIPC the Hospitalist Co. and Select Medical Corp.from turning to the market as a source of capital.
IPC, based in North Hollywood, Calif., sold last month more than 4 million shares of stock at $18.50, including 1.14 million shares of newly issued stock, netting the company close to $20 million in additional funds to work with after fees.
And large stockholders of IPC sold almost 2.89 million existing shares to bring in over $50 million. The total included 49,000 shares sold by IPC founder and Chief Executive Officer Adam Singer, a move that netted $856,520. The company said the shares belonged to a trust fund for Singers children and the proceeds from the sale stayed in the trust.
The major seller in the offering, however, was one of the founding shareholders, James Roach. Documents filed with the federal Securities and Exchange Commission indicated that Roach was selling 120,000 of his 150,000 shares, a sale worth about $2.1 million.
While the SEC documents note that the offering sold stock at $18.50 a share, after commissions the company and shareholders received only $17.48 per share. Shares of IPC stock have traded for between about $16 and $24 since the company went public in January. IPC offered 5.2 million shares for $16 a piece.
Officials for IPC declined comment.
Meanwhile, long-term-care and rehab provider Select Medical Corp., Mechanicsburg, Pa., took a first move toward an initial public offering with a filing that states its intention to sell shares on the New York Stock Exchange under the ticker symbol SLC.
Little on the proposed IPO was included in the Select filing other than an estimate for how much it would be worth, roughly $100 million. The document includes the fact that there are about 250 million existing shares of Select Medical stock. Carolyn Curnane, a Select Medical spokeswoman , said that those figures were accurate, but declined to provide any additional information on the IPO.