Home Health Care Privia Health launches IPO, aims to raise up to $370M

Privia Health launches IPO, aims to raise up to $370M


Privia Health Group, a company that provides technology and services to physician practices, is launching an initial public offering, aiming to raise between $331 million and $370 million.

The Arlington, Virginia-based company plans to sell 19.5 million shares of common stock, of which 2.8 million will be offered by Privia Health and 16.7 million will be sold by its majority stockholder. The price is currently expected to be between $17 and $19 per share. The company could be valued at up to $1.97 billion, according to MarketWatch.

Further, the company plans to grant the underwriters a 30-day option to purchase up to an additional 2.9 million shares of its common stock at the IPO price.

Privia Health focuses on reducing physicians’ administrative burdens and accelerating the transition to value-based care. To this end, it provides a technology platform to help physician practices improve efficiency and patient experience.

The company operates in six states and the District of Columbia and has approximately 2,770 provider partners in its existing markets. It also includes accountable care organizations to help physicians engage in value-based care.

Privia Health plans to use the IPO proceeds for general corporate purposes, including working capital, research and development, business development, sales and marketing activities. It may also use a portion of the funds to acquire or invest in complementary businesses, technologies or other assets. Currently, Privia Health does not have any agreements or understandings related to acquisitions.

As of the year ended Dec. 31, the company had earned approximately $817 million in revenue and $31.2 million in net income, according to its IPO filing with the Securities and Exchange Commission. It also gained $1.3 billion in total practice collections, which the company defines as the total collections from all practices and all sources of reimbursement.

Privia Health has applied to list its common stock on the Nasdaq Global Select Market under the ticker symbol “PRVA.”

Goldman Sachs & Co. and J.P. Morgan are acting as joint lead book-running managers for the IPO.

Photo: jxfzsy, Getty Images

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