American Healthcare REIT, Fortegra and Fractyle Health set IPO price ranges as thaw continues

By Steve Gelsi

American Healthcare REIT eyes $869M in proceeds as the largest of the three after a strong debut of CG Oncology and a weak open from BrightSpring last week

American Healthcare REIT Inc., Fortegra Group Inc. and Fractyle Health Inc. set proposed price ranges in their upcoming initial public offerings on Monday, after a mixed reception to two deals late last week.

The three deals signal that the thaw in initial public offerings remains on track despite a choppy debut from BrightSpring Health Services Inc.

American Healthcare REIT ranks as the largest of the three, with expected IPO proceeds of about $869 million, followed by $342 million for specialty insurance company Fortegra and $127 million for Fractyle Health, a specialist in Type 2 diabetes and obesity treatments.

While CG Oncology Inc. (CGON) nearly doubled in its trading debut this past Thursday, Friday's initial public offering from BrightSpring Health Services Inc. (BTSG) fell 15%.

Also read: CG Oncology IPO rockets 96% in sign of pent-up deal demand

Also read: BrightSpring's stock slides in trading debut after IPO priced below range

Meanwhile, a large IPO from outdoor sports gear maker Amer Sports (AS) remains on deck. The company planned to offer 100 million shares priced at $16 to $18 each, to raise up to $1.8 billion. The deal was expected to kick off last week.

With 484.5 million shares expected to be outstanding once the deal closes, Amer Sports would have a valuation of $8.7 billion.

Backed by investment firm AHI Group Holdings, American Healthcare REIT plans to offer 56 million shares at an estimated price range of $12 to $15 with underwriters BofA Securities and Morgan Stanley for trading on the New York Stock Exchange under the ticker symbol AHR.

Based on the midpoint of the price range American Healthcare REIT will raise $869.4 million including the shares to be sold by underwriters.

Irvine, Calif.-based American Healthcare REIT holds 298 properties in the healthcare space and $4.6 billion in total assets.

Fortegra Group plans to offer 18 million shares at an estimated price range of $15 to $18 for trading under the symbol TFG on the New York Stock Exchange, with underwriters Goldman Sachs, JPMorgan and Jefferies.

Based on the midpoint of the range and including underwriter shares, the IPO will raise $341.6 million.

Jacksonville, Fla.-based Fortegra Group is backed by Tiptree Holdings LLC, a principal shareholder of the company.

Fractyle Health plans to offer 7.33 million shares at an estimated price range of $14 to $16 a share with underwriters BofA Securities, Morgan Stanley and Evercore ISI for trading under the symbol GUTS on the Nasdaq.

Including shares to be sold by the underwriters, the IPO will raise about $127 million.

-Steve Gelsi

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01-29-24 0814ET

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