Get ready for a big test of the private-equity (private equity news) backed IPO (IPO news) market. Hospital chain HCA filed for an IPO last week, noting that it expects to raise $4.6 billion by selling common shares. About $2.5 billion will go to pay down debts. Much of the rest will go to existing shareholders cashing out. KKR (KKR news) and Bain Capital are certainly hoping that the IPO market recovers a bit.

Amid the gyrations last week, several private equity-backed IPOs were canceled. Three private equity-backed companies pulled planned offerings Thursday: Ryerson Inc., Smile Brands Group Inc. and Americold Realty Trust. That said, they could be reactivated soon. So far this year, it's been a mixed bag for private equity-backed offerings.

Ten private equity-backed deals have been priced, raising $2.2 billion (Renaissance Capital). This accounts for 27 percent of the 37 total IPOs completed so far this year. Last year, 22 of the 63 total IPOs, or 35 percent of the total number, were private equity-backed deals. Some were forced to pare back the number of shares to be sold. Some were priced below their initial targets. Through April, the 10 PE-backed IPOs were up 4.8 percent in the after market. But you get the feeling that private equity firms are still chomping at the bit to exit more companies. We'll see more portfolio companies file to offer soon. Unless the Mr. Market says otherwise.

For more:
- here's an article on HCA's filing

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