Axios Pro Exclusive Content

KKR-backed BrightSpring shares slumped after IPO debut

Illustration of a close up hundred dollar bill disintegrating into nothing.

Illustration: Aïda Amer/Axios

KKR-backed BrightSpring Health's shares sunk 15% in its debut Friday after the home health operator priced its IPO below a marketed range.

Why it matters: It was the worst opening-day showing for a U.S.-listed company raising over $250 million in its IPO since 2021, per Bloomberg data.

Driving the news: BrightSpring priced its IPO at $692.9 million and shares were trading at $11 in its debut, giving the company a market valuation of almost $1.9 billion. As of this morning, the stock was trading at $11.12 per share.

  • The company had sold 53.3 million shares at $13 each, and concurrently sold tangible equity units at a coupon of 6.75%, per Bloomberg.
  • Including those units, the offering raised about $1.1 billion. BrightSpring had marketed the shares for $15 to $18, and had offered the 8 million tangible equity units, or mandatory convertible securities, at a fixed price of $50 each.

Catch up quick: Louisville-based BrightSpring had a net loss of about $150 million on revenue of $6.45 billion for the nine months ended Sept. 30.

The bottom line: BrightSpring's flop is a net negative for the health care services IPO market.

Go deeper