Oak Street lines investor pockets green on IPO

摘要

OAK STREET HEALTH, the General Atlantic-backed healthcare facility operator, staged an explosive debut on Thursday after achieving a premium valuation on its IPO. Oak Street, whose green vans transport elderly patients to its facilities, closed first-day trading at US$40, a nifty 90.5% gain from the US$21 offering price on the sale of 15.625m shares. JP Morgan, Goldman Sachs and Morgan Stanley walked accounts up from US$15-$17 at launch to US$19-$20 on Wednesday and to the final mark of US$21 without any increase in the offering size. The midpoint of the original talk targeted a valuation of about three times 2021 EV/revenue. From its current base of 67 healthcare facilities in nine states, Oak Street plans to open 29 additional facilities, including in New York and Mississippi later this year.