Long Beach-based Agilon Health Inc. raised approximately $1.07 billion through its initial public offering and saw its share price soar 38% to close at $31 on April 15, its first day of trading as a public company.

Agilon, which helps primary care physician groups cap costs for their Medicare Advantage patients, had priced its offering at $23 a share, placing 46.6 million shares on the New York Stock Exchange. That translates to net proceeds of $1.07 billion.

The IPO’s underwriters have the option over the next 30 days of buying an additional 7 million shares at the same initial offering price.

The company is controlled by an investment fund associated with Clayton Dubilier & Rice, a New York-based private equity firm. According to Agilon’s prospectus with the SEC, the CD&R fund owned 69% of all shares prior to the IPO. After the offering closes, that fund is expected to own about 58% of shares, with the exact percentage depending on how many additional shares the underwriters purchase.

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Source: Los Angeles Business Journal

By Howard Fine