Hospital operator Select Medical Holding's initial public offering priced at $10 a share, below the estimated range, and raised $300 million, according to an underwriter.
Select Medical, which operates 87 long term acute care hospitals and 948 outpatient rehabilitation clinics in the United States, cut the number of shares sold to 30 million, an underwriter said.
The company had previously estimated it would sell 33.3 million shares for between $11 and $13. Select Medical is one of the few IPOs this year to miss the estimate range.
The IPO was managed by Goldman Sachs & Co, Morgan Stanley, Bank of America Merrill Lynch and JP Morgan. The underwriters have the option to purchase up to another 5 million shares.
Select Medical said in its most recent prospectus it planned to use most of the money to pay down debt.
Revenue for the Pennsylvania company rose 8.1 percent to $2.1 billion in 2008. Net income was $31.8 million.
Select Medical's largest stakeholder is private equity firm Welsh Carson Anderson & Stowe.
Select Medical shares are scheduled to begin trading on Friday on the New York Stock Exchange under the symbol "SEM."