Surgery Partners sets range on $350m IPO

(Reuters) — Surgical center manager Surgery Partners priced its initial public offering at $23-$26 per share, valuing the company at up to $1.25 billion.

The company is selling 14.3 million common shares in the IPO and expects to raise $350.4 million at the mid-point of the range, according to its regulatory filing.

The Nashville-based company, owned by H.I.G Capital LLC, operates 94 ambulatory surgery centers and five hospitals in 28 states. Patients can receive services including anesthesia, diagnostics and radiation oncology at these centers.

Surgery Partners estimated the IPO at $100 million when it registered the offering last month.

Surgery Partners’ competitors include Surgical Care Affiliates Inc, AmSurg Corp and United Surgical Partners International, which recently struck a merger deal with Tenet Healthcare Corp.

H.I.G. Capital, which currently owns more than 80 percent stake in the company, bought Surgery Partners in 2010 for an undisclosed amount. It later bought surgery center operator NovaMed for $214 million and merged the businesses.

Last November, Surgery Partners acquired Symbion Holdings Corp, owned by Crestview Partners, for $792 million.

BofA Merrill Lynch, Goldman Sachs, Jefferies, Citigroup and Morgan Stanley are among those underwriting the IPO. The stock is expected to list on the Nasdaq under the symbol “SGRY”.

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