Vanguard Health's Disappointing IPO

Vanguard Health Systems, a hospital operator controlled by Blackstone Group (NYSE: BX), managed to raise just $450 million Tuesday in its initial public offering, which was 22% less than it had sought.

After LinkedIn (NYSE: LKND) and Pandora Media (NYSE: P) fell 29% and 16%, respectively, following their recent IPOs, Vanguard lowered its offering to attract buyers. After initially offering shares for $21 to $23, the Nashville, Tennessee-based company sold 25 million shares at $18 each.

Vanguard owns and operates 26 hospitals in five states, two surgery centers in California and three health insurance plans. Blackstone bought a majority stake in the company in 2004 for $1.75 billion. After the IPO, current investors still hold a majority of the voting rights, according to the filing.

Vanguard is expected to begin trading on the New York Stock Exchange Wednesday under the symbol VHS.