August 14, 2006—Virtual Radiologic Corporation (Minnetonka, Minn) announced Friday that it has filed a registration statement with the Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of its common stock. Founded in 2001, Virtual Radiologic is a provider of teleradiology services, reading around 700,000 studies a year.
Under the proposed offering, Virtual Radiologic would sell up to $75 million in common stock. The company said it had a first-quarter loss of $1.5 million, or $1.71 per share, compared to a loss of 4 cents per share a year ago. The company also noted that its revenue for the quarter was $9.7 million, up from $5 million last year.
Goldman, Sachs & Co. would act as the sole book-runner and co-lead manager; Merrill Lynch & Co. would act as co-lead manager; and William Blair & Company would act as the co-manager. The number of shares to be offered and the price range have not been determined.
The company’s IPO follows one earlier this year by Nighthawk Radiology (Coeur D’Alene, Ind), which managed to gain 28% over its $16 a share offering in the month following its opening day of Feb. 9, 2006. Though the company’s stock traded at a high of $27.50, it opened today at just $1.87 more than its initial price.
Virtual Radiologic will trade under the ticker name VRAD.
—Cat Vasko
