Accretive Health shares rise in market debut
NEW YORK (Reuters) - Shares of healthcare revenue management company Accretive Health Inc AH.N rose as much as 9 percent in their stock market debut on Thursday.
The shares opened at $12.74 and rose as high as $13.10 in early trading on the New York Stock Exchange.
In its initial public offering on Wednesday, the company raised about 40 percent less than originally planned. It sold 10 million shares at $12 each, raising $120 million. It had planned to sell 13.33 million shares at $14 to $16 each.
Accretive Health helps U.S. healthcare companies manage patient registration, insurance and benefits verification, medical treatment documentation, coding and billing.
The Chicago, Illinois-based company posted net services revenue of $125.94 million in the three months ended March 31, up 12 percent from a year earlier. It posted a profit of $314,000, compared with a year-earlier loss of $638,000.
A single customer, Catholic nonprofit healthcare company Ascension Health, accounted for about 60 percent of its net services revenue.
Accretive Health said it would use proceeds from the IPO to pay preferred stock liquidation preferences and for general purposes.
Underwriters were led by Goldman Sachs & Co and Credit Suisse. The shares trade on the New York Stock Exchange on under the symbol "AH."
(Reporting by Clare Baldwin; editing by John Wallace)