Healthcare Firm Guardian Pharmacy Raises $112 Million in US IPO, According to Reuters

Guardian Pharmacy, which specializes in pharmacy services for long-term healthcare facilities, successfully raised $112 million in its initial public offering (IPO) in the U.S., resulting in a company valuation of $869.3 million.

The Atlanta-based company set its offering price at $14 per share for 8 million shares of Class A common stock, which is at the lower end of its anticipated price range of $14 to $16.

The U.S. market for new listings is witnessing a resurgence in investor interest, driven by expectations of monetary policy easing from the Federal Reserve and a more optimistic outlook for economic stability.

Investors are being discerning in their choices, favoring companies with more stable financials and showing a preference against those that are cash-strapped. This comes after a prolonged downturn in the IPO market over the last two years, which saw disappointing performances from many newly-public companies.

Founded in 2004, Guardian Pharmacy offers a range of technology-driven services aimed at supporting residents in long-term care facilities. As of June 30, the company operated 50 pharmacies, catering to around 174,000 residents.

For the full year of 2023, Guardian Pharmacy reported revenues of $1.05 billion, an increase from $908.9 million in the previous year. According to regulatory filings, more than two-thirds of the company’s annual revenue over the past three years has been generated from residents in assisted living, behavioral health facilities, and group homes, with the rest coming from skilled nursing facilities.

The company reported a net profit of $37.7 million in 2023, compared to $49.7 million the previous year.

Shares of Guardian Pharmacy will be listed on the New York Stock Exchange under the ticker symbol “GRDN.” The underwriters for the offering include Raymond James, Stephens, and Truist Securities.