In an exciting development for the healthcare sector, a prominent chronic care management firm is set to make its debut on the Nasdaq Global Market. Starting June 6, the company will trade under the ticker symbol OMDA, with an initial public offering (IPO) price of $19 per share, which falls right in the middle of its anticipated price range.
This IPO is expected to generate approximately $150 million for the company, marking a significant milestone in its growth trajectory.
The firm plans to release 7.9 million shares of its common stock, and it has also provided underwriters with a 30-day option to purchase an additional 1.185 million shares at the initial offering price. The closing of this offering is anticipated to occur on June 9.
INDUSTRY CONTEXT
Earlier this month, the company submitted an S-1 filing with the U.S. Securities and Exchange Commission (SEC), positioning itself as the second digital health entity to pursue an IPO this year. This move highlights the growing interest and investment in digital health solutions.
At the end of the previous month, the company revealed its ambition to achieve a valuation of approximately $1.1 billion through this IPO, reflecting its confidence in the market and its business model.
Initially, the firm concentrated on prediabetes management but has since broadened its offerings to encompass a range of health conditions, including diabetes, cardiometabolic health, hypertension, and musculoskeletal issues. This expansion demonstrates its commitment to addressing various health challenges faced by patients today.
Based in San Francisco, the company provides a virtual care program designed to assist patients in managing their health conditions through personalized, data-driven coaching aimed at behavior change. The platform enables users to monitor their exercise, dietary habits, blood glucose levels, and other vital health metrics. Additionally, patients can access virtual care for ongoing support, enhancing their overall health management experience.
In a related development, another digital health company recently went public on the NYSE under the symbol HNGE, raising approximately $437.3 million through its IPO, which involved the sale of 9.14 million shares. This company opened trading at $39.25, reflecting a 23% increase from its IPO price of $32, and closed at $37.56 per share, further illustrating the robust interest in digital health investments.