Change Healthcare Sets IPO at 42.9 Million Shares; Sees Pricing at $16-$19 Apiece

By Colin Kellaher

Change Healthcare Inc., a healthcare-technology company indirectly controlled by McKesson Corp. (MCK), on Friday said it will sell about 42.9 million common shares in its initial public offering, with an expected price range of $16 to $19 each.

At the $17.50 midpoint of that range, the Nashville, Tenn., company said it expects net proceeds of about $709 million, or roughly $815 million if the underwriters exercise their option to buy an additional 6.43 million shares.

Change said it expects to raise up to an additional $277 million in a concurrent offering of five million tangible equity units.

Change is a holding company for investments in a 2017 venture that combined most of McKesson's technology segment with a company owned by private-equity firms Blackstone Group LP (BX) and Hellman & Friedman LLC. McKesson, a San Francisco pharmaceutical wholesaler, currently owns 70% of the venture.

Change said it has applied to list its shares on the Nasdaq Global Market under the symbol CHNG.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 14, 2019 07:12 ET (11:12 GMT)

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