Guardian Pharmacy targets up to $974 million valuation in US IPO

(Reuters) -Guardian Pharmacy Services said on Monday it was targeting a valuation as much as $973.5 million in its initial public offering in the United States.

Expectations of an imminent interest rate cut by the U.S. Federal Reserve are encouraging more companies to press ahead with their listing plans.

Guardian Pharmacy is aiming to raise as much as $108 million by offering 6.75 million shares at a price range of $14 to $16 each.

Founded in 2004, the Atlanta-based company provides pharmacy services to long-term health care facilities in the United States. It owns 50 pharmacies and serves 174,000 residents across 36 states.

The company counts pharmacy services providers Omnicare, PharMerica, PharmCareUSA and Polaris Pharmacy Services among its competitors.

Guardian Pharmacy's revenue jumped to $575.4 million in the six months ended June 30, compared with $502.4 million in the same period in 2023.

More than two-thirds of Guardian Pharmacy's annual revenue over the past three years was from residents of assisted living facilities and behavioral health facilities and group homes, the company said.

The company earned $22.9 million in the first half of this year, compared with $30.2 million in the same period in 2023.

Guardian Pharmacy counts investment firms Bindley Capital Partners and Cardinal Equity Partners among its backers.

William Bindley serves as the chairman of Guardian Pharmacy. He was the founder and CEO of pharmaceutical distribution firm Bindley Western, which was acquired by Cardinal Health in a $2.1 billion deal in 2001.

Guardian Pharmacy, which will use a portion of the IPO proceeds to lower debt, plans to list on the New York Stock Exchange under the symbol "GRDN".

Raymond James, Truist Securities and Stephens Inc are the underwriters for the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shounak Dasgupta)