Omada Health shares jumped greater than 40% of their Nasdaq debut Friday after the virtual chronic care company priced its stock at $19 per share in its IPO.
The stock opened at $23 and quickly traded past $27.
The corporate said in a press release late Thursday that it sold 7.9 million shares within the offering, amounting to about $150 million. The pricing was in the course of the expected range, and valued the corporate at just over $1 billion, though that number might be higher on a completely diluted basis.
Omada, founded in 2012, is trading under ticker symbol “OMDA.” The corporate offers virtual care programs to support patients with chronic conditions like prediabetes, diabetes and hypertension. Sean Duffy, Omada’s CEO, co-founded the corporate with Andrew DiMichele and Adrian James, who’ve each moved on to other ventures.
It is the second digital health initial public offering in a matter of weeks following an prolonged drought for the industry. Digital physical therapy startup Hinge Health debuted on the Recent York Stock Exchange in May. Hinge is currently trading at $38.50 after selling shares in its IPO at $32.
The tech IPO market has been showing signs of life, with Hinge being one in all the most recent offerings. On Thursday, shares of crypto company Circle Web soared 168% of their NYSE debut. Fintech company eToro began trading last month, and Chime Financial, which offers online banking services, is about to hit the market next week.
“Today is the appropriate moment for us,” Duffy told CNBC’s “Squawk Box” on Friday. “We like the dimensions of the model, we like the dimensions of the business, equally we felt pull from the capital markets.”
Omada’s revenue increased 57% in its first quarter to $55 million from $35.1 million a 12 months earlier, in keeping with its prospectus. For 2024, revenue rose 38% to $169.8 million from $122.8 million the previous 12 months. The corporate’s net loss narrowed to $9.4 million in the primary quarter from $19 million a 12 months ago.
U.S. Enterprise Partners, Andreessen Horowitz and Fidelity’s FMR LLC are the biggest outside shareholders in the corporate, each owning between 9% and 10% of the stock.
