Aurora Diagnostics pulls plug on IPO

After filing a prospectus in 2010 and hoping to raise $150 million, Aurora Diagnostics has withdrawn its plans for an IPO, the South Florida Business Journal reports.

The company, specializing in anatomic pathology, never set a price for its planned IPO, and no one from Aurora has issued a statement on what led to the cancelation. However, as the Journal notes, the company may have worried that declining revenues would muddle investor interest in an offering. The company took a $32.9 million loss in 2011, almost 10 times that of the previous year, and Aurora reported a $2.1 million loss on revenue of $72.1 million in the first quarter of 2012, the Journal reports.

Aurora had planned to use the IPO to fund the acquisition of smaller pathology practices and the expansion of its workforce. At the time, its shares were underwritten by Morgan Stanley, UBS and Barclays. Prior to filing the 2010 prospectus, Aurora took out a $335 million credit facility from Barclays, TechJournal​ reported. 

The majority of Aurora's revenues come from non-hospital outpatient diagnostics, and while the IPO plans are scrapped at the moment, the company has still attracted some private investment, including $200 million raised through bonds in 2010.

- read the South Florida Business Journal report