KKR, Bain aim for HCA IPO

April 7, 2010 | By Jim Kim

So what to make of the news that Kohlberg Kravis & Roberts and Bain Capital will try to take HCA public later this year? You certainly can't blame executives at the buyout firms for floating the news, to get a read on possible reaction and prep the market so to speak.

But these intentions in no way guarantee that a deal will ever happen, especially a deal that would raise $3 billion buyout firms. Bloomberg notes that the market has been somewhat skeptical of IPOs of companies backed by private equity so far this year. In the biggest offering so far, "Bain's Sensata Technologies Holding NV sold $569 million of shares last month at the low end of its estimated price range. In February, Blackstone Group LP's Graham Packaging Co. and CCMP Capital Advisors LLC's Generac Holdings Inc. were forced to cut the size of their offerings."

We'll likely have a few more private equity-backed IPOs hit the market between now and whenever the HCA deal prices. The buyout firms can only hope for good responses from investors. One thing is clear: Private equity firms are chomping at the bit for chances to exit investments.

For more:
- here's a Reuters article