By Manya Saini
Dec 11 (Reuters) - Lumexa Imaging's shares rose marginally in their Nasdaq debut on Thursday, valuing the provider of diagnostic imaging services at $1.76 billion, as investor enthusiasm for new listings defied the traditional year-end market lull.
The IPO market, poised for its strongest year since 2021 after a three-year dry spell, has regained momentum in recent months despite a disruption caused by the longest U.S. government shutdown in the fall.
Private equity-backed companies have
tested the market more this year and have found success as investors remain selective about backing new issuers in mature sectors that offer more predictable revenue.
The company - backed by private equity firm Welsh, Carson, Anderson & Stowe - started trading at $18.65 apiece, compared with the IPO price of $18.50.
The new treatment paradigm has driven demand for our services, CEO Caitlin Zulla told Reuters in an interview, adding that investor feedback shows enthusiasm for the "opportunity to accelerate what we are already good at".
"Now is the right time for us to IPO."
Demand for diagnostic imaging in the United States is rising as aging demographics and a higher incidence of lifestyle-related disease drive hospitals and clinics to add capacity.
Growth is strongest in higher-value procedures such as MRI and CT, while new AI tools are gaining traction across the industry to improve diagnostic accuracy, manage workflows and enhance image quality.
The company is leveraging AI technology across its business. "Technology is important in every facet of healthcare, but especially radiology and imaging," Zulla said.
Lumexa raised $462.5 million in the offering by selling 25 million shares at the midpoint of its targeted range of $17 to $20.
The company delivers diagnostic imaging services such as MRI and CT and runs 184 centers across 13 states, as of September 30.
Barclays, J.P. Morgan and Jefferies were the lead underwriters of the IPO.
(Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)
