Nursing Home Giant PACS Raises $450M In Upsized IPO Offering

In its Wall Street debut on Thursday, PACS Group’s (NYSE: PACS) shares traded above the initial public offering (IPO) price to raise $450 million in funds.

PACS shares closed at $23 per share, up nearly 10% above the IPO’s price of $21. This values the healthcare firm at $4 billion. 

The Farmington, Utah-based company raised $450 million from the sale of 21.4 million shares in an upsized offering. The company had initially planned to market 19.05 million shares.


The nursing home giant is the second organization in the sector to launch an IPO this year, and follows American Healthcare REIT’s offering in February. 

PACS Group is one of the largest skilled nursing providers delivering care through a portfolio of independently operated facilities. Founded in 2013, PACS oversees more than 200 nursing facilities across nine states and serves over 20,000 patients daily. 

The company reported $113 million in profit in 2023 on $3.1 billion in revenue.


In its March IPO filing with the Securities & Exchange Commission (SEC), PACS noted its success in transforming “under-performing” facilities into those with high star quality ratings.

“As we continue to grow, we intend to explore additional purchases of real-estate assets, through purchase options or right-of-first refusals in existing leases, as well as acquisitions and de novo construction of purpose-built facilities,” the company’s SEC filing stated.

As of December, the company leased 165 facilities, directly owned the real estate at 29 facilities, and owned partial interests in an additional 14 facilities through joint ventures managed by third parties, the filing noted.

And in the weeks leading up to the IPO filing, PACS executives spoke to Skilled Nursing News about how the organization plans to aggressively expand its footprint to avail efficiencies from scaling up – and what that entails in terms of a change to their operations.