Greenway set for IPO
Facebook's expected IPO filing may be the talk of Wall Street this week, but electronic health records and practice management firm Greenway Medical Technologies is poised to make some waves of its own with an $80 million initial public offering set for Thursday.
In what's billed as one of the busiest months for IPOs in recent memory, Greenway – whose PrimeSUITE EHR and PM technology is used by some 33,000 care providers nationwide, serving 20 million patients – will join eight other new stock offerings this week, including biotech firm Cempra and Internet security company AVG. (Another eight IPOs are slated for next week.)
The firm intends to issue roughly 6.7 million shares, priced between $11 and $13, to raise some $80 million in capital. At the midpoint of that price range, Greenway would have a market cap of $347 million. The firm's NYSE ticker will be GWAY.
Investment website Seeking Alpha points out that, according to KLAS, while 35 percent of practices who've implemented EHRs are already thinking about switching vendors, Greenway has a customer retention rate of 95 percent.
KLAS named the PrimeSUITE practice management tool as its "2011 Best in KLAS" for physician practices of sizes between one and 10, and 11 and 75 docs.
"Although we believe GWAY may edge up after the IPO...we would not chase it in the after market," wrote Seeking Alpha analysts.