Accretive Health, a revenue-cycle technology company for which Ascension Health is a minority owner and its largest customer, said it will seek to raise $93 million to $106 million in an initial public offering. In a filing with the Securities and Exchange Commission, Chicago-based Accretive said it will sell roughly 6.67 million shares with an expected price of $14 to $16 per share to be used for growth, balance sheet strength, liquidity for existing shareholders, acquisitions and other general corporate purposes, according to the filing. Stockholders are expected to sell a similar amount of shares.
Accretive Health makes plans for IPO
Ascension Health, St. Louis, was Accretive's founding customer and holds a 10% stake in the company, but the Roman Catholic health system is expected to sell at least 689,000 shares, according to the filing. That amounts to roughly $9.6 million to $11 million under the price range listed with regulators. Ascension will hold an 8.3% stake following the offering. The company reported operating income of $17.6 million on revenue of $510.2 million as of Dec. 31, 2009, up from operating income of $2.8 million on revenue of $398.5 million the prior year.
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