HCA, Nashville, filed a registration statement this morning for an initial public offering of shares that could be worth as much as $4.6 billion, although only $2.5 billion will represent new shares sold by HCA, according to the filing and a news release.
HCA files for IPO worth up to $4.6 billion
The registration statement did not indicate a price range for the shares nor the number of shares that would be sold. In a news release, HCA said the offering would be worth approximately $4 billion, but the registration statement estimated that it could be as high as $4.6 billion, if the issue's underwriters take their full allotment of shares. Sales of existing shares would account for the difference between $2.5 billion and the higher figures, but the company would not gain any proceeds from those sales, according to the filing.
HCA also announced that its board approved a $500 million distribution to existing shareholders and holders of vested options earlier this week. On Jan. 29, HCA's board approved a $1.75 billion distribution to existing shareholders. In the filing, HCA said it does not expect to pay any future dividends, retaining earnings for debt repayment and reinvestment in its business.
The company reported first-quarter profits of $388 million, up from $360 million in 2009's first quarter. Revenue increased 1.5%, to $7.54 billion. HCA held a previously scheduled conference call to discuss its first-quarter results, but did not take any questions because the filing of the registration statement marked the beginning of a “quiet period” under federal securities regulations, said Richard Bracken, chairman and CEO.
HCA left the public markets in a leveraged buyout worth more than $33 billion in November 2006. Three private equity firms—Bain Capital, Bank of America Merrill Lynch Capital Partners and Kohlberg Kravis Roberts & Co.—joined members of the Frist family and the management team in the buyout. The offering will mark the third time HCA has made an initial public offering since its founding in 1968.
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