Health and Healthcare
Diplomat Turns Bunt Pricing Into Homerun for IPO Buyers
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Diplomat is the largest independent and the overall fourth-largest specialty pharmacy company in the United States. The company offers customized care management programs for patients with complex chronic diseases. The other specialty pharmacy businesses are divisions of Express Scripts Holding Co. (NASDAQ: ESRX), CVS Health Corp. (NYSE: CVS), and Walgreen Co. (NYSE: WAG).
The company sold 10 million shares in the IPO, raising $130 million at a market cap of about $750 million. Selling shareholders sold the remaining shares.
Underwriters, including lead managers Credit Suisse Securities and Morgan Stanley, have a 30-day option on an additional 1 million shares from both the company and the selling shareholders.
The stock traded up nearly 26% at $16.35 about half an hour before noon on Friday. The range for the day was $15.04 to $17.75. Nearly 6 million shares had traded thus far.
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