Revenue-cycle outsourcing firm Ensemble Health Partners on Tuesday disclosed new details of its planned initial public offering.
Here are the five things to know about the company's IPO plans.
1. Ensemble Health Partners, a Cincinnati-based company that health systems, hospitals and physician groups tap for outsourcing revenue-cycle management functions, filed for an IPO in September. Once it's public, the company plans to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol "ENSB."
2. Ensemble Health Partners on Tuesday said it will launch the roadshow for its IPO, where executives pitch the company to investors. They plan to offer 29.5 million shares of its Class A common stock, with an option for underwriters to purchase an additional up to 4.425 million shares of Class A common stock.
3. The IPO price for Class A common stock is expected to be between $19 and $22 per share, according to Ensemble Health Partners. That means the company could raise up to $746.35 million in the IPO, according to an S-1 form that Ensemble Health Partners filed with the Securities and Exchange Commission on Tuesday.
4. Since 2019, Ensemble Health Partners—which had been acquired by Bon Secours Mercy Health in 2016—has been owned by private-equity firm Golden Gate Capital. Cincinnati-based Bon Secours Mercy Health in 2019 sold a 51% equity stake in Ensemble Health Partners to Golden Gate Capital but remained a minority owner and a customer of the company.
Golden Gate Capital and Bon Secours Mercy Health will continue to have "significant influence" over Ensemble Health Partners, according to the S-1 filing, "including control over decisions that require the approval of stockholders," as the two companies will account for the majority of the company's voting power.
5. Sixteen digital health companies went public in the first three quarters of the year, according to data compiled by Digital Health Business & Technology. Of the four companies that went public in 2021's third quarter, two completed IPOs, while the other two went public through mergers with special-purpose acquisition companies.
