BrightSpring Health Services – a large home- and community-based services provider – is not going through with its planned IPO, according to an S-1 filing.
Backed by the PE firm KKR and Walgreens Boots Alliance (Nasdaq: WBA), the company had initially filed the paperwork for an IPO that was expected to raise close to $800 million in October of 2021.
Over a year later, it has decided to reverse course.
“The Registrant has determined not to proceed with the proposed initial public offering of the securities contemplated by the Registration Statement at this time,” BrightSpring wrote in its filing. “Because the proposed offering will not occur, the Registrant believes that the withdrawal of the Registration Statement is consistent with the public interest and the protection of investors, as contemplated by Rule 477(a) of the Securities Act.”
BrightSpring provides care to complex populations. Its offerings include home health, personal care, hospice, neuro rehabilitation, pediatric therapy and behavioral health services, among others. Overall, its network spans across 50 states and over 360,000 clients and patients.
When filing to go public last year, BrightSpring pointed to a “$1.5 trillion combined market opportunity” across its business lines.
“We are an essential part of our nation’s health delivery network as a front-line provider of high-quality and cost-effective care to a large and growing number of people, who increasingly require a combination of specialized solutions to enable holistic health care management,” BrightSpring wrote when initially filing to go public.
The home-based care market gained a few new entrants to the public market over the last two years – namely Enhabit Inc. (NYSE: EHAB) and Aveanna Healthcare Holdings (Nasdaq: AVAH).
But while the above-mentioned market may still exist for BrightSpring and other providers of similar makeups, it is generally not a great time to be going public. The market is volatile as economists forecast a looming recession, causing public companies’ stock to dip and home-based care startups to extend runways with the funding they already have.