Lumexa Imaging eyes up to $1.89B company valuation in IPO

Radiology provider Lumexa Imaging is eyeing a potential company value of up to $1.89 billion in a recently filed initial public stock offering. 

The Raleigh, North Carolina-based company—which until July went by US Radiology Specialists—hopes to raise as much as $500 million through the IPO, Reuters reported Tuesday. It’s offering up to 25 million shares at a value of between $17 to $20 apiece. 

“We remain at the forefront of imaging care by purchasing best-in-class equipment and technology from innovative manufacturers and software companies,” Lumexa said in a Dec. 2 filing with the U.S. Securities and Exchange Commission. “Our premium equipment, skilled technologists and subspecialized radiologists make us the clear choice for advanced imaging referrals,” the company added,” noting that imaging volumes “are growing at an accelerated rate relative to the overall market due to the aging population of the United States and increasing disease prevalence.”

A Lumexa representative declined to comment on the IPO Tuesday. If the fundraising effort succeeds, Lumexa would soon begin trading on the Nasdaq under the ticker symbol LMRI. 

The radiology group previously revealed news of its desire to go public in another SEC filing last month, Radiology Business reported previously. 

Charlotte Radiology and New York private equity firm Welsh, Carson, Anderson & Stowe first formed US Radiology Specialists as a joint venture in 2018. As of Sept. 30, Lumexa believes it was the second largest operator of outpatient imaging centers in the U.S., with 184 across 13 states. The company also has inked eight joint venture partnerships with hospital systems, building a network of 100,000 referring providers representing over 29,000 physician practices as of 2024, according to the prospectus. 

The company has achieved significant growth in recent years while generating “robust margins” using a business model that emphasizes cash flow generation. Total consolidated revenues increased about 7.8% year over year, up to $755.3 million for the nine months ending Sept. 30. Lumexa recorded a net loss of about $18.4 million during those same nine months, a decrease from the $69 million loss in 2024. Meanwhile, adjusted earnings (before interest, taxes, depreciation and amortization) were approximately $166.4 million during the same period, with an adjusted EBITDA profit margin of 22%. 

Barclays, J.P. Morgan and Jefferies are acting as lead underwriters of the offering. Private equity sponsors are sitting on a record backlog of companies primed to go public, Reuters noted, as soaring equity markets and falling interest rates “set the stage for a long-awaited IPO market recovery.”