Omada Health, a virtual chronic care firm, launched its IPO with a share price of $19, which quickly surged over 40% upon its debut on Nasdaq. The shares opened at $23 and traded above $27 shortly afterward.
In a press release issued late Thursday, the company announced it sold 7.9 million shares through the offering, totaling around $150 million. The pricing landed in the middle of the expected range, valuing the company at just over $1 billion, although that valuation could change significantly.
Established in 2012, Omada trades under the ticker “Omda.” The company focuses on virtual care solutions for individuals dealing with chronic health issues, including pre-diabetes, diabetes, and high blood pressure. Omada was co-founded by Sean Duffy, Andrew Dimichele, and Adrian James.
This IPO marks the second notable entry for digital health in a few weeks, as the sector has faced challenges recently. A digital physiotherapy startup made its market debut on the New York Stock Exchange in May, with Hinge currently trading at about $38.50 after its own IPO priced at $32.
The tech IPO market seems to be showing some revival, with Hinge being one of the latest entrants. On Thursday, Circle Internet made headlines by soaring 168% on its NYSE launch. Fintech company Etoro began its trading last month, while Chime Financial is anticipated to enter the market next week.
“We believe this is the right moment for us,” Duffy shared during an interview on CNBC’s “Scoobox” on Friday. “We appreciate the size of our models and our business. We felt drawn to the capital market now.”
Omada’s revenues increased by 57% to $55 million in the first quarter, up from $35.1 million the prior year. For 2024, revenue is projected to rise by 38% to $169.8 million, a substantial growth from $122.8 million the previous year. Meanwhile, the company’s net losses have narrowed from $19 million last year to $9.4 million in the first quarter.
Notably, US venture capital firms Andreessen Horowitz and Fidelity FMR LLC stand as the largest external shareholders, each owning between 9% and 10% of the company’s shares.
