Performant Financial rises on 1st day of trading
NEW YORK (AP) - Shares of Performant Financial Corp. posted double-digit gains on their first day of trading while the broader markets edged up slightly.
The stock ended trading at $10.60, up 18 percent from its initial pricing at $9 a share.
The initial public offering of 9 million shares, was priced late Thursday below an expected range of $12 to $14.
The Livermore, Calif., company, which helps its government and private clients recover delinquent or defaulted assets, is selling 1.9 million shares. The remaining 7.1 million shares come from shareholders.
Performant plans to use proceeds for working capital and general corporate purposes as well as paying a contract-termination fee to an affiliate of its principal owner, Parthenon Capital Partners.
Selling shareholders have granted the underwriters, which include Morgan Stanley and Goldman Sachs, an option to buy about 1.4 million shares in case of excess demand.
For the six months ended in June, Performant posted net income of $8.6 million, or 17 cents per share, up from $6.5 million a year earlier. Revenue grew 29 percent year over year to $100.7 million.
Shares are listed on the Nasdaq Global Select Market under the ticker symbol "PFMT."
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