IPC the Hospitalist Shares Jump in Debut

Friday January 25, 2:21 pm ET

IPC the Hospitalist Co. Shares Rise Nearly 30 Percent in Market Debut After IPO Priced at $16

NEW YORK (AP) -- Shares of IPC The Hospitalist Co. gained nearly 30 percent in their first day of trading Friday, after the hospitalist service provider's initial public offering priced at $16 per share.

Shares jumped $4.44, or 27.8 percent, to $20.44 in afternoon trading. Shares hit a low of $19.99 and a high of $21, after opening at $20.15.

The North Hollywood, Calif.-based company had expected the IPO of 5.2 million shares to price between $15 and $17 per share.

IPC offered 3.3 million shares, while a group of selling stockholders offered 1.9 million shares.

IPC anticipates proceeds of about $38.3 million, after expenses. The company plans to use the proceeds to repay debt and for general corporate purposes, including the acquisition of physician practices.

Hospitalist medicine is a growing specialty that centers on inpatient care primarily delivered in hospitals. Hospitalists are different from primary-care physicians and specialists because they focus on treating patients only in nonoffice settings.

IPC has more than 550 affiliated hospitalists, including physicians, nurse practitioners and physician assistants, who provide services at more than 300 hospitals and other inpatient centers in 16 states.

"There is a lot of competition, but they have a success formula that really works," said Francis Gaskins, president of IPODesktop.com. "There is going to be a lot of demand over time for their services."

Credit Suisse Securities LLC, Jefferies & Co., Wachovia Capital Markets LLC and William Blair & Co. LLC served as underwriters. The selling stockholders have granted the underwriters the option to buy up to an additional 705,000 shares at the offering price to cover any overallotments.

The offering is expected to close on Jan. 30, pending customary closing conditions.