In its initial public offering, hospital staffing outsourcer Team Health Holdings, Knoxville, Tenn., received a cool welcome to the market.
Team Health completes initial offering
The stock, whose ticker symbol on the New York Stock Exchange is TMH, climbed about 7% from its initial price of $12 per share Wednesday during the first day of trading to close at $12.88 for 13.3 million shares. Before the opening, the stock had an expected price range of $14 to $16 on 20 million shares.
“The mere fact that Team Health opened flat after the price was slashed … and the share size decreased … was a huge disappointment,” said Scott Sweet, senior managing partner for IPO Boutique, in an e-mail. “The last two weeks have been very challenging for any IPO debut.”
Sweet said that Team Health backer Blackstone Group took the unusual step of holding back on selling their own shares.
Team Health does business with about 550 hospitals and related clinics in 46 states. Most of its revenue comes from providing staffing and services for hospital emergency departments.
A Team Health spokewoman declined to comment per the company attorneys' recommendations regarding the quiet period that follows an IPO.
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