Emergency medical services provider GMR Solutions, which is backed by private equity major KKR, has reduced the valuation target for its planned US initial public offering to approximately $3.3bn, underscoring continued investor caution with new equity listings, according to a report by Reuters.
The Lewisville, Texas-based company, which operates under the Global Medical Response brand, is now seeking to raise around $478.7m by offering 31.9m shares priced at $15 each. The revised terms represent a sharp reduction from its earlier plan to raise up to $797.9m at a price range of $22 to $25 per share.
The move comes despite signs of renewed activity in the IPO market following a slowdown earlier this year. Market participants say investor appetite remains concentrated on issuers with stronger growth profiles and clearer balance sheet dynamics.
Matt Kennedy, senior strategist at Renaissance Capital, said the reduced pricing illustrates the uneven nature of the current IPO environment, where investors remain willing to support high-demand offerings while showing less enthusiasm for more leveraged or slower-growth businesses.
GMR completed a $5.4bn refinancing in 2025 and reported approximately $5bn in long-term debt at the end of December. Kennedy noted that the company’s leverage profile and modest growth trajectory may have contributed to softer investor interest.
For the first quarter ended 31 March, GMR expects revenue of between $1.42bn and $1.46bn, compared with $1.37bn in the same period last year.
According to Kennedy, reducing the equity valuation can help sponsors offset the impact of substantial debt burdens and may ultimately create upside for investors if the company succeeds in improving operations and deleveraging over time.
Affiliates of KKR, Ares and HPS are expected to purchase $500 million in private placement warrants alongside the offering, an increase from the previously proposed $350 million commitment.
JP Morgan, KKR and BofA Securities are acting as underwriters on the transaction.
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