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Highlights
- HireRight was started in 1990 and it claims to serve more than 40,000 customers.
- The price range of the common shares is not out yet and the company is hoping to raise US$ 100 million from the HireRight IPO.
- As per the prospectus filed with the US Securities and Exchange Commission, HireRight claims that it is the only such company that gives consistent solutions to global customers.
Background screening company HireRight GIS Group Holdings LLC has filed paperwork for an initial public offering (IPO) in the US equities market. The Nashville, Tennessee-based company provides services related to employees like background screening, drug and health screening, and verification.
HireRight was started in 1990 and it claims to serve more than 40,000 customers, which includes half of the Fortune 100 companies. In 2018, the company merged with a background screening company named General Information Services and has acquired several companies ever since then.
HireRight has acquired PeopleCheck, BackTrack and J-Screen. For the IPO, Goldman Sachs and Credit Suisse are the leading underwriters and it will be renamed to HireRight Holdings Corp before the closing of the initial public offering.
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All you need to know about HireRight's IPO
The price range of the HireRight common shares is not out yet and the company is hoping to raise US$ 100 million in gross proceeds from the IPO. The employee services company have applied to list its common shares on the New York Stock Exchange (NYSE) and if the IPO happens, HireRight will trade under the stock symbol HRT.
It is not clear when the IPO will happen, however, it seems retail investors would get a chance to buy the pre-IPO shares of the company.
This year witnessed several IPOs across the world, and they are attracting retail investors as they can provide higher returns when the stock gets listed on a stock market. However, it is important to note that the market is volatile and sometimes the stock opens at price lesser than the pre-IPO price.
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Should you invest in HireRight?
As per the prospectus filed with the US Securities and Exchange Commission, HireRight claims that it is the only such company that gives consistent solutions to global customers. The company says that it offers more than 250 products, which are a full suite of tech-enabled Human Resource compliance services.
In addition, the company has over 70 Applicant Tracking System (ATS) integrations and 50 per cent of HireRight's revenue came via these integrations only.
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The company's platform seems user-friendly, as the prospectus mentions that it has a 95 per cent satisfaction rate. 4.2 million service contracts are managed annually by HireRight, and it claims to provide a positive candidate experience.
Bottom line
For the six months ended June 30, 2021, HireRight’s revenues were US$ 326.5 million, up from US$ 259.4 million in the same comparable period of last year.
If the IPO happens, the company could use the money from the gross proceeds to enhance the platform and offer diversified services to the clients.
