RadNet Announces Pricing of Public Offering of Common Stock
- RadNet, Inc. (RDNT) announces a public offering of 4,550,000 shares of common stock at $44.00 per share.
- The gross proceeds from the offering are expected to be around $200 million for RadNet.
- Underwriters have a 30-day option to purchase an additional 682,500 shares at the public offering price.
- The offering is anticipated to close shortly, providing RadNet with significant funds for its operations.
- None.
Insights
The announcement of RadNet's underwritten public offering at $44.00 per share, aiming to raise approximately $200 million, is a significant capital market event. This influx of capital could be indicative of RadNet's strategic initiatives for expansion or debt reduction. The offering size and pricing suggest investor confidence in RadNet's market position and growth prospects. However, it's crucial to assess the dilutive impact on current shareholders, as the addition of 4,550,000 shares will spread earnings over a larger equity base.
It is also important to note the 30-day option granted to underwriters to purchase additional shares. This 'greenshoe' option can stabilize the stock price post-offering, which might be beneficial for both the company and its investors. The use of proceeds is not detailed, which leaves some uncertainty regarding the specific intentions of the company. Investors should monitor how these funds will be allocated to gauge the potential for return on investment.
RadNet's positioning in the outpatient diagnostic imaging services market is crucial to understanding this public offering's potential impact. The fixed-site outpatient imaging sector is growing due to trends like the shift from inpatient to outpatient care, technological advancements and an aging population. By raising capital, RadNet may be aiming to invest in new technologies, expand its geographic footprint, or acquire smaller competitors, which could increase its market share and competitive edge.
However, the market will be observing how effectively RadNet deploys the raised capital. The company's ability to leverage these funds for profitable growth is essential for long-term value creation. Failure to do so could lead to market skepticism and stock underperformance. Additionally, the timing and size of the offering could reflect management's view of the market conditions and their stock's valuation, which could be interpreted as a positive signal if the pricing is perceived to be favorable.
From an economic perspective, RadNet's public offering is a microcosmic indicator of broader economic trends. The willingness of the market to absorb a $200 million offering reflects liquidity and investor appetite for healthcare sector investments. This sector often exhibits counter-cyclical characteristics, which means it can maintain stability even during economic downturns due to the essential nature of healthcare services.
The pricing of the offering at $44.00 per share provides insights into the perceived value of RadNet's stock and the company's capital structure optimization. The decision to raise equity, as opposed to debt financing, could be influenced by current interest rates and the company's balance sheet considerations. An equity offering, while dilutive, avoids the interest burden of debt and may be preferable if the company anticipates higher borrowing costs or if it aims to maintain a certain debt-to-equity ratio.
LOS ANGELES, March 07, 2024 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services, announced today the pricing of its underwritten public offering of 4,550,000 shares of its common stock at a price to the public of
RadNet intends to use the net proceeds from the proposed offering for general corporate purposes and future acquisitions.
Jefferies and Raymond James are acting as joint active book-running managers for the offering. Truist Securities and Barclays are also acting as joint book-running managers for the offering. RBC Capital Markets, Sidoti & Company, LLC and CJS Securities are acting as co-managers for the offering.
The securities described above are being offered by RadNet pursuant to a shelf registration statement previously filed and declared effective by the Securities and Exchange Commission (“SEC”). When available, copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388 or by email at prospectus_department@jefferies.com; or from Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com. Electronic copies of the preliminary prospectus supplement and accompanying prospectus were filed with the SEC and are available on the website of the SEC at http://www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About RadNet, Inc.
RadNet, Inc., is the leading national provider of freestanding, fixed-site diagnostic imaging services and related information technology solutions (including artificial intelligence) in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 366 owned and/or operated outpatient imaging centers. RadNet’s markets include Arizona, California, Delaware, Florida, Maryland, New Jersey and New York. Together with affiliated radiologists, inclusive of full-time and per diem employees and technologists, RadNet has a total of over 9,700 employees.
Forward-Looking Statements
RadNet cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements relating to the offering, including the timing and size of the offering and the anticipated use of proceeds therefrom and the grant of the underwriters’ option to purchase additional shares. The inclusion of forward-looking statements should not be regarded as a representation by RadNet that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in RadNet’s business, including, without limitation: the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed public offering and the other risks and uncertainties described in the Company’s filings with the SEC, included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and RadNet undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
CONTACTS:
RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
FAQ
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