(Article updated at 11:50 a.m. ET.)
Premier, one of the nation's largest group purchasing organizations, went public today with an initial stock offering valued at $760.1 million. The IPO steers nearly 20% of the proceeds, after underwriters' standard 6% take, to the company for working capital.
About three-quarters will go to Premier's 181 member-owner hospitals in the form of stock that can be sold over the next seven years.
Shares were priced at $27—exceeding Premier's upper estimate of $26—and were trading at $30 Thursday morning on Nasdaq under the ticker symbol PINC.
The Charlotte, N.C.-based company suggested a price range of $23 to $26 in a Sept. 16 regulatory filing. Premier said it expected to raise about $648.3 million, or $745.6 million if underwriters exercise their overallotment option. Underwriters have a 30-day option to purchase another 4.2 million shares at the IPO price.