Accretive Health, a Chicago-based provider of revenue cycle management services for U.S. healthcare providers has launched an initial public offering of 10 million shares of its common stock at a price to the public of $12 per share – well below what company officials had originally intended.
The company lowered its IPO goal to $120 million after initially seeking $213 million, accoring to Bloomberg data and a filing with the Securities and Exchange Commission. The company had planned on selling 13.3 million shares for $14 to $16, but scaled back its plans in wake of a volatile market.
At least 17 IPOs have been waithdrawn this month because of the market, according to Bloomberg, and companies that have completed deals reduced their initial requests by as much as 70 percent over conerns that Europe's debt crisis would hinder global economic recovery.
Accretive Health's common stock began trading Thursday on the New York Stock Exchange under the symbol "AH." The stock climbed almost 10 percent to $13.18 shortly after 10 a.m.
Of the 10 million shares offered to the public, Accretive Health is offering approximately 6.6 million shares and selling stockholders are offering 3.3 million. In addition, the underwriters have a 30-day option to purchase up to an additional 1.5 million shares.
Accretive Health provides healthcare revenue cycle management services, including aspects of patient registration, insurance and benefit verification, medical treatment documentation and coding, bill preparation and collections.