The Underwriters of the PACS Group IPO have Exercised their Option to Purchase ~3.21 Million Shares of Common Stock from the Company's Co-Founders

Yesterday evening, Farmington, Utah-based PACS Group (NYSE:PACS) announced that the underwriters of the company's just completed initial public offering have exercised their 30-day option to purchase ~3.21 million shares of PACS common stock from the firm's co-founders at the offering price of $21.00/share "less underwriting discounts and commissions."

As noted in the company news release, "PACS did not receive any proceeds from any sale of shares by the selling stockholders."

Even with the underwriters' purchase of these 3.21 million shares, the company co-founders, Jason Murray and Mark Hancock, will still own 83.6% of the PACS common stock, which (based upon the corporate governance standards of the New York Stock Exchange) makes PACS a "controlled company." 

As per the company's Prospectus filed with the U.S. Securities and Exchange Commission under Rule 424(b)(4), the company "intend(s) to rely on the exemptions from certain corporate governance standards of the (NYSE.)"

As reported late last week by Utah Money Watch in "Farmington-based PACS is Poised to Shock Utah's Biz Community with its $3.1 Billion IPO Slated to Hit Today, Thursday, 11 April 2024,"

• PACS Group is an 11-year-old healthcare provider that specializes in owning, investing in, and managing Skilled Nursing Facilities.
• With 208 facilities within its network, PACS is now one of the largest SNF owner/operators in the United States.
• It employs over 32,000 employees, has the ability to support 22,000 residents/patients, and generated over $3.1 billion in revenue in 2023 (ended December 31).
• With the slightly over 21.4 million shares of PACS common stock sold in last Thursday's IPO, the firm generated over $450 million in gross proceeds from the offering.

In after hours trading on Wall Street yesterday, the per share price of PACS common shares hit $24.00/share, up 20% from the IPO price, and giving the firm a market valuation of over $3.5 billion.

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