HCA IPO Will Be Biggest In A Long Time And Is Actually Oversubscribed

HedgeFundLIVE.com — Tonight will see the pricing of HCA Holdings Inc.’s third IPO and second from private equity ownership in what should be the largest U.S. private equity backed IPO ever.  HCA is the largest privately owned hospital chain in the U.S. and is looking to raise about $3.5 billion from the offering.  This would translate to a market cap somewhere in the $15 billion range.  Back in 2006 the company was taken private by Bain Capital, KKR, and Merrill Lynch Global Private Equity in a $32 billion deal at the peak of the LBO craze.  Below is a sampling of the company’s business overview from its 10-K filing:

At December 31, 2010, we operated 164 hospitals, comprised of 158 general, acute care hospitals; five psychiatric hospitals; and one rehabilitation hospital. The 164 hospital total includes eight hospitals (seven general, acute care hospitals and one rehabilitation hospital) owned by joint ventures in which an affiliate of HCA is a partner, and these joint ventures are accounted for using the equity method. In addition, we operated 106 freestanding surgery centres, nine of which are owned by joint ventures in which an affiliate of HCA is a partner, and these joint ventures are accounted for using the equity method. Our facilities are located in 20 states and England.

Many of HCA’s hospitals are located in “high growth” urban and suburban areas with 9,808 beds and 38 hospitals in Florida, as well as 10,410 beds and 36 hospitals in Texas.  On the company’s most recent earnings call Chairman Richard Bracken said that the company’s size, efficiency and diverse nature should promote future growth on the bottom line.

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http://www.hedgefundlive.com/blog/hca-ipo-will-be-biggest-in-a-long-time-and-is-actually-oversubscribed

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