Ardent Health is preparing to join the ranks of industry behemoths such as HCA and Tenet Healthcare as the 30-hospital health system nears an initial public offering of its stock.
Ardent filed last week to list 14.3 million shares priced at $20 to $22 per share on the New York Stock Exchange under the symbol "ARDT."
Related: Ardent Health seeks $315M in second IPO attempt
IPOs are a common move for companies looking for capital to growth and their investors to seek returns.
"A lot of companies go through this process of trying to grow to a point where perhaps the next financial investor, whether it's a private equity group or somebody else, is willing to pay a premium on a multiple that provides ... a reasonable return on investment," said Rick Kes, healthcare senior analyst at accounting firm RSM.
Brentwood, Tennessee-based Ardent disclosed its plan to go public in 2018, but withdrew it in 2020 just before the COVID-19 pandemic struck.
Ardent is majority-owned by private capital firm Equity Group Investments, which held a 59.6% stake as of June 30, 2023. Other investors and their stakes include United Arab Emirates-based healthcare platform Pure Health, 23.3%; Ventas-owned ALH Holdings, 7.2%; and company executives, a combined 1.6% stake, according to Securities and Exchange Commission filings.
Post-IPO, Equity Group Investments would remain a majority owner. The company declined to answer questions about the IPO and its future investment plans for Ardent.
Ardent said in regulatory filings it expects to raise $274.3 million, excluding the underwriters’ option to purchase additional shares, and use the proceeds for working capital, debt repayment and acquisitions. The company has been making investments in its ambulatory services footprint and in virtual care, along with expanding through joint ventures with nonprofit systems.
The visibility that comes with going public also can help with expansion plans.
"When you look at the allure of [companies like] HCA, I think there's appeal for health systems that want to get to that level of cache of being a public company," said Doug Swill, partner of the healthcare industry group at law firm Sheppard Mullin.
Ardent reported $5.4 billion in revenue and $53.9 million in net income for 2023.
Here's a look at how Ardent would stack up among other publicly traded healthcare companies.
