BrightSpring Health Service Inc. Set to Enter IPO Market

BrightSpring Health Service Inc., a home health care service provider backed by KKR & Co. Inc., is gearing up to launch its initial public offering (IPO) for trading on Friday. This move signals a positive shift in the IPO market, which experienced a lull due to geopolitical uncertainty, inflation concerns, and banking sector turbulence last year.

Based in Louisville, Ky., BrightSpring plans to offer 53.3 million shares for trading under the symbol BTSG on the Nasdaq, with an estimated price range of $15 to $18 per share. This IPO comes on the heels of home builder Smith Douglas Homes Corp.’s recent debut, highlighting a resurgence of interest in more established companies compared to technology unicorns.

In an exciting development, social media platform Reddit is reportedly considering an IPO in March. Valued at around $10 billion, Reddit is expected to join the IPO wave, according to sources familiar with the deal.

In the case of BrightSpring, the IPO is scheduled for Friday, as reported by IPOScoop.com. The offering is projected to raise approximately $880 million based on the midpoint of the price range. The company has secured 15 underwriters, including industry leaders such as Goldman Sachs & Co. LLC, KKR, Jefferies, Morgan Stanley, UBS Investment Bank, BofA Securities, Guggenheim Securities, and Leerink Partners.

BrightSpring will go public with a market capitalization of approximately $2.82 billion, considering its current 171.19 million shares outstanding. This IPO offers an opportunity for investors to participate in the growing home health care sector.

BrightSpring Reports Net Loss and Revenue in Nine Months Ended Sept. 30

BrightSpring, a company backed by private-equity firm KKR & Co. Inc. and Walgreen Boost Alliance Inc., reported a net loss of $149.63 million and revenue of $6.45 billion in the nine months ended Sept. 30. This is compared to a net income of $2.46 million and revenue of $5.75 billion in the same period last year.

The company, which traces its roots back to 1974, withdrew its IPO on November 23, 2022, following an earlier IPO filing in October of 2021. KKR owns 69% of the company, while Walgreen has about 34.9%. Even after going public, these two shareholders will still maintain ownership of approximately 67.9% of the company.

BrightSpring was initially incorporated as Phoenix Parent Holdings Inc. in 2017, as part of the acquisition of PharMerica Corp. by Walgreen and KKR. In 2021, the company changed its name to BrightSpring Health Services.

CG Oncology Sets IPO Price Range

CG Oncology announced on Thursday its plans to offer 11.8 million shares at an estimated price range of $16 to $18 per share in its upcoming IPO. The company has secured underwriters Morgan Stanley, Goldman Sachs & Co. LLC, and Cantor LifeSci Capital.

If the IPO price falls at the midpoint of the range, CG Oncology will raise around $200.6 million. With 57.05 million shares outstanding, including the underwriters’ over-allotment, the company is seeking a valuation of approximately $970 million based on a $17 IPO price.

CG Oncology is a late-stage clinical biopharmaceutical company focused on the development of bladder cancer drugs, including its product candidate, cretostimogene.