NEW YORK (Reuters) – LifeStance Health Group Inc, the U.S. outpatient mental health company backed by an affiliate of buyout firm TPG, said on Wednesday it sold shares in its initial public offering above a targeted range to raise $590.4 million.<\/p>\n
LifeStance sold 32.8 million shares at $18 apiece, above an earlier target range of $15 to $17 each, giving it a market capitalization of $6.73 billion.<\/p>\n
TPG had acquired a majority interest in the company in May 2020 at a total enterprise value of $1.2 billion, after which Summit Partners and Silversmith Capital Partners continued to hold a minority interest.<\/p>\n
Of the shares sold, 32.8 million were by LifeStance and around 7.2 million by current investors.<\/p>\n
LifeStance\u2019s listing plan comes as health experts increasingly flag concerns around evidence of higher risks of brain and mental health disorders among COVID-19 survivors.<\/p>\n
Founded in 2017, the therapy provider provides behavioral healthcare services to children, adolescents and adults for a variety of mental health issues.<\/p>\n
LifeStance employs more than 3,300 licensed mental health clinicians who provide care through an online delivery platform or at in-person centers.<\/p>\n
The Scottsdale, Arizona-based company incurred a net loss of $8.7 million on revenue of $143.1 million for the three months ended March 31, its filing showed.<\/p>\n
Shares are due to begin trading on the Nasdaq on Thursday under the symbol \u201cLFST\u201d.<\/p>\n
Morgan Stanley, Goldman Sachs, J.P. Morgan and Jefferies are the lead underwriters for the offering.<\/p>\n