How to Buy Sotera Health Stock IPO

As the Sotera Health IPO date draws near, investors await an expanded selection in the healthcare sector.

Ruchi Gupta - Author

Nov. 13 2020, Published 9:58 a.m. ET

sotera health ipo
Source: istock

The Sotera Health IPO date is around the corner. The healthcare services company outlined its listing terms including the size of the offering and the pricing range. 

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What can investors expect from the Sotera Health IPO? Has the company released the IPO date? Can investors buy the stock?

sotera health lab
Source: Pixabay
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When is the Sotera Health IPO date?

Sotera Health hasn’t set a date for its IPO yet. However, the company is expected to go public in the week of Nov. 16 after pricing the offering. While the exact Sotera Health IPO date remains unclear for now, the company said that it will list its stock on the Nasdaq exchange under the ticker symbol “SHC.”  

The Sotera Health IPO preparation is being handled by investment banks J.P. Morgan, Credit Suisse, Goldman Sachs, and Barclays. The other financial institutions involved in the Sotera Health IPO process are Citigroup, Jefferies, and RBC Capital Markets.

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What is Sotera Health?

Sotera Health is a medical sterilization company. The company provides lab testing services. Sotera Health serves the medical device and pharmaceutical industries and has about 6,000 customers across 50 countries. It was founded in 1946 and is headquartered in Broadview Heights, Ohio. Sotera Health has global operations. The company says that its business is ensuring that healthcare is safe for everyone.

Sotera Health generated $601.3 million in revenue in the nine months through September 2020, which increased from $584.8 million in a similar period a year ago. The company made a profit of $5.1 million in the nine months through September 2020, which dropped from $7.1 million a year ago.

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The Sotera Health IPO proceeds will go toward funding working capital and paying down debt. The company has about $2.9 billion in long-term debt. The priority is to try and reduce the debt burden as the company goes public.

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sotera health lab work
Source: Pixabay
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Who owns Sotera Health?

Currently, Sotera Health is owned by private equity firms Warburg Pincus and GTCR. GTCR, which owns 29 percent of Sotera Health, purchased its stake in 2011. Warburg Pincus, which owns 43 percent of Sotera Health, purchased its stake in 2015. In addition to Warburg Pincus and GTCR, Sotera Health executives and directors also have substantial stakes in the company. 

The Sotera Health IPO plan comes about two years after Warburg Pincus and GTCR tried to sell the company. The private equity firms pursued selling Sotera Health in 2018. However, a lawsuit forced them to drop the sale plan. Residents of an area where Sotera Health operates a factory in Illinois took the company to court. The residents claimed that emissions from the factory caused them to develop health problems like cancer. Sotera Health operates dozens of factories and employs about 2,900 people around the world.

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What is Sotera Health’s IPO stock price?

Sotera Health plans to price its IPO stock in the range of $20–$23 per share. The company aims to sell 46.6 million shares, which would help it raise more than $1 billion in new capital. Sotera Health is seeking a valuation of up to $6.38 billion as it goes public. 

How to buy the Sotera Health stock IPO

You may not be able to buy Sotera Health stock at the IPO price unless your income or net worth qualifies you as an accredited investor. However, you can be among the investors buying Sotera Health stock as soon as it hits the public market. Robinhood has a pre-IPO stock purchase feature that allows investors to place advance orders for freshly public stocks.


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