On May 10, Bill Simpson wrote an analysis of Skilled Healthcare Group (SKH). On May 15, the company sold 16.7 million shares near the high end of the expected range of $14 to $16. The stock closed on May 23 at $15.74.
The text of Mr. Simpson's original writeup follows:
Skilled Healthcare Group plans on offering 19.1 million shares (assuming over-allotments) at a range of $14-$16. Insiders are selling 10.8 million shares in the deal. Credit Suisse is lead managing the deal, with eight firms co-managing. Post-ipo SKH will have 37.4 million shares outstanding for a market cap of $561 million on a $15 pricing. IPO proceeds will be used to repay debt.
