GMR Solutions IPO Prices Low: What It Says About Healthcare and Private Equity

Today’s story is GMR Solutions, the KKR-backed ambulance and emergency medical services company, listing on the NYSE under $GMRS. It raised $479 million by selling 31.9 million shares at $15 each. The detail is the discount. GMR had earlier aimed for $22 to $25 per share, so this IPO shows the market is open, but only when investors get the price they want.

Investors are willing to fund healthcare infrastructure and private equity-backed listings, but they are demanding safety when a company has heavy debt, modest growth and reimbursement exposure.

Winners

IPO underwriters and capital markets banks

Even though GMR priced below expectations, the deal still got completed. IPO activity creates underwriting fees, advisory revenue ...