Hinge Health’s TrueMotion feature.
Courtesy: Hinge Health
Hinge Health priced its IPO at $32 per share on Wednesday, at the highest end of the expected range.
The digital physical therapy startup sold 8.52 million shares within the offering, raising about $273 million. The whole offering was for 13.7 million shares, with the balance being sold by existing shareholders.
Hinge, founded in 2014, will trade on the Recent York Stock Exchange under the ticker symbol “HNGE.” The corporate filed its initial prospectus in March and updated the document earlier this month with an expected pricing range of $28 to $32.
On the IPO price, Hinge Health is price about $2.6 billion, though that number could possibly be higher on a totally diluted basis. That is down significantly from a non-public market valuation of $6.2 billion in October 2021, the last time the corporate raised outside funding.
The corporate uses software to assist patients treat acute musculoskeletal injuries, chronic pain and perform post-surgery rehabilitation remotely. It was co-founded by CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg, who’ve each experienced personal struggles with physical rehabilitation.
Revenue in the primary quarter increased 50% to $123.8 million from $82.7 million a yr ago. Hinge reported net income for the period of $17.1 million, swinging from a net lack of $26.5 million in the identical period last yr.
Hinge’s IPO can be closely watched by the digital health sector, which has been mostly devoid of public offerings since 2021. Digital health has been a very tough market over the previous couple of years as firms have struggled to recuperate from a post-Covid slowdown.
Tech IPOs broadly have been few and much between of late. But there are signs that activity is picking up. Shares of stock brokerage platform eToro popped of their market debut last Wednesday, and artificial intelligence infrastructure provider CoreWeave reported 420% revenue growth, topping estimates and sparking a 56% rally within the stock last week.
Hinge has raised greater than $1 billion from investors including Tiger Global Management and Coatue Management.
“We have now many many years of labor ahead,” Perez wrote in a letter to investors in March. “We hope you join us on this journey.”
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