Shares of Skilled Healthcare Group Inc. priced at the high end of their range and rose 2.5% during trading Tuesday in their public offering debut that raised $258 million.
The Foothill Ranch-based nursing home owner’s 16.6 million share offering was priced at $15.50 a share on Monday, toward the high end of a $14 to $16 a share forecast.
The company has a market value of $530 million.
Onex Corp., a Toronto investment firm, is Skilled’s largest shareholder with a 78% stake after the offering.
Skilled runs more than 70 nursing homes and assisted living facilities in California and four other states. Skilled plans to use most of the proceeds to pay down debt. As of March 31, its total debt was $515 million.
Skilled isn’t the only Orange County based nursing home operator looking to test the public waters.
Mission Viejo-based Ensign Group has filed plans with the Securities and Exchange Commission to raise up to $95 million in an initial public offering. Ensign, which has revenue of roughly $360 million, has about 60 facilities in California and five other states.
