PACS Group (Ticker: PACS US) is a healthcare services company specializing in skilled nursing care. The company operates over 200 facilities across nine states, serving more than 20,000 patients. It focuses on acquiring underperforming long-term custodial care skilled nursing facilities and transforming them into higher acuity, short-term transitional care skilled nursing facilities. PACS Group emphasizes a decentralized model, empowering local facility leadership for autonomy in operations. For FY2023, the company reported $3.1 billion in revenue and a net income of $112.9 million.

PACS Group will list on the NYSE on April 11, 2024. The firm is selling 19,050,000 shares at a price range of $20.00 to $22.00, planning to raise about $419 million. The IPO is managed by Citi, JPMorgan, Truist Securities, and RBC Capital Markets, along with co-managers KeyBanc Capital Markets, Oppenheimer & Co., Regions Securities LLC, and Stephens Inc.

The company plans to use the IPO proceeds primarily for debt repayment and to allocate some funds for corporate growth and potential acquisitions. Founders will retain approximately 87.1% voting power post-IPO. IPO risks include dependence on third-party payor reimbursement, staffing challenges, regulatory compliance, and control by founders post-offering.