Lumexa Imaging, a Raleigh, North Carolina-based provider of diagnostic imaging services, has raised $462.5 million through its initial public offering (IPO), according to a report by Reuters. This IPO values the company at $1.75 billion, marking a significant milestone for the firm originally known as US Radiology Specialists. The company sold 25 million shares at a price of $18.50 each, falling within its marketed range of $17 to $20.
Founded in 2018 as a partnership between Charlotte Radiology and private equity firm Welsh, Carson, Anderson & Stowe (WCAS), Lumexa has rapidly expanded its operations through more than a dozen acquisitions. Currently, the company operates 184 imaging centers across 13 states in the U.S., positioning itself as a notable player in the diagnostic imaging sector.
Financially, Lumexa reported a net loss of $18.4 million for the nine months ending September 30, with revenues amounting to $755.3 million. This represents an improvement from the previous year, where it recorded a $69 million loss on revenues of $700.8 million, indicating a growing operational scale despite ongoing losses.
The strategic rationale behind Lumexa’s IPO is to leverage the raised capital to enhance its operational capabilities and further its expansion strategy. The company aims to solidify its market position and continue its trend of growth through additional acquisitions.
The IPO is expected to trade on Nasdaq under the ticker symbol LMRI, with Barclays, JP Morgan, and Jefferies serving as joint lead bookrunners for the offering.
As for the timeline, while the exact closing date of the IPO is not specified, it is anticipated that the company will move swiftly to deploy its raised funds. The potential market impact includes increased visibility and liquidity for shareholders, as well as growth opportunities for employees as the company expands.
In terms of regulatory considerations, Lumexa may need to navigate various compliance and reporting requirements that accompany public company status, but no specific antitrust or regulatory hurdles related to the IPO have been mentioned in the filing. Overall, this IPO positions Lumexa Imaging for future growth and further development in the competitive imaging services landscape.