Latest news with #OmadaHealth
Axios
9 hours ago
- Business
- Axios
Some unicorns have finally accepted reality
Venture capital's distribution blockade may be breaking down, at least a bit, thanks to some unicorns finally accepting that their ZIRP-era valuations were inflated. Driving the news: Circle and Omada Health both are expected to price IPOs this week, at valuations below where they previously were valued by venture capitalists. Chime yesterday launched its roadshow, with pricing expectations suggesting more than a 50% haircut to the $25 billion valuation it fetched n 2021. Hinge Health and eToro both recently went public below their private valuations. The big picture: This is beginning to feel like a sea shift. For the past two years, most unicorns delayed IPOs until they could "grow into" their valuations. Some of this was to protect against dilution and to maintain employee morale, although ego also seemed to play an outsized role. There also were fears that public market investors would view valuation discounts as a sign of weakness, and drive share prices down even farther (i.e., deSPAC redux). Now, however, there's a cohort of companies that have decided to stop endlessly circling their destination. And they've been rewarded, often with upsized IPOs and strong aftermarket performance. Hinge and eToro, for example, are up 26.4% and 17.8% from their IPO prices, respectively. Zoom in: Yes, some of these companies and later-stage investors might be getting some shove from clauses in structured deals, but that's par for the course after a valuation bubble. Look ahead: The private markets often operate with a herd mentality, which means this recent IPO burst should have tailwinds; with an obvious caveat of macro economic disruptions. Not so much during the early summer, when bankers still like to vacation, but in the run between Labor Day and Thanksgiving.
Yahoo
4 days ago
- Business
- Yahoo
Omada Health Preps to Go Public as IPO Market Revives
There's an IPO joke to be made here, but unfortunately for you, only institutional investors will get it. On Thursday, virtual healthcare provider Omada Health became the latest company to press ahead with an initial public offering amid economic uncertainty that's given cold feet to some other companies expected to do likewise. The IPO is expected to take place next week following Omada's announcement that its roadshow is underway. READ ALSO: E.l.f. Soars After $1 Billion Pow(d)er Move to buy Hailey Bieber's Rhode and Shrinking GDP Shows Tariffs' Impact as Courts Scrutinize Their Legality This year began with bankers and venture capitalists feeling bullish about a revitalized IPO market as they anticipated business-friendly policies from the Trump administration. And, in the first quarter, the needle moved in that direction: According to Ernst and Young, the period saw 15 listings raise more than $7.9 billion, 20% higher than the first quarter of 2024 and the strongest start to a year since 2021. But following the selloff prompted by Trump's 'Liberation Day' tariff announcement in April, EY noted in April that IPO market activity had come 'to a complete halt.' Of note, buy-now-pay-later giant Klarna and ticket marketplace StubHub postponed their highly anticipated listings. Mercifully, subsequent weeks have seen the IPO market shake off some rust. Stock-trading app eToro debuted earlier this month, pricing its IPO above the expected range, and its shares have since risen 19%. Meanwhile, fintech Chime and stablecoin issuer Circle filed paperwork to go public. Adding to the recent run of optimism is Nvidia-backed AI firm CoreWeave, which began trading in March. The company reported its first results on May 14, with 400% year-over-year revenue growth besting expectations. Its shares are up 170% since its listing. Which sets the stage for Omada: The San Francisco-based firm specializes in virtual care for chronic conditions including diabetes and hypertension, which it offers through programs with employers, pharmacy benefit managers, health systems and health plans. Omada plans to raise up to $158 million at a $1.1 billion valuation. While virtual care boomed during the pandemic, the sector more recently had an up-and-down couple of years as the world returned to normalcy. Omada, on the other hand, managed to improve its performance in that time: According to a Securities and Exchange Commission filing, its revenue increased to $169.8 million last year, up from $122.8 million in 2023 while its net losses shrank to $47.1 million from $67.5 million. Hinging on Health. There's one very important recent IPO we haven't mentioned yet: Omada competitor Hinge Health, which debuted on the New York Stock Exchange last week. In a promising omen for Omada, Hinge raised $273 million at a $2.6 billion valuation after selling shares at the top end of its expected range, suggesting investors have an appetite for health-tech now that the segment's post-pandemic prospects have stabilized. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Sign in to access your portfolio
CNBC
5 days ago
- Business
- CNBC
Omada Health aims to go public with market cap of up to $1.1 billion
Omada Health plans to raise up to $158 million in its up coming IPO, attaining a market cap of about $1.1 billion at the top end of its expected range, according to a filing on Thursday. The virtual chronic care company filed its prospectus earlier this month, and has just updated the filing with an expected pricing range of $18 to $20 per share. Omada said it plans to sell 7.9 million shares in the offering. The size of the offering and share price could change, and the market cap could be higher on a fully diluted bases. The IPO is expected to take place next week. Omada, which offers virtual care programs to support patients with chronic conditions like prediabetes, diabetes and hypertension, will be the second digital health company to hit the market in a matter of weeks after an extended drought. Digital physical therapy startup Hinge Health debuted on the New York Stock Exchange earlier this month. Omada, based in San Francisco, describes its approach as a "between-visit care model" that is complementary to the broader health-care ecosystem, according to its prospectus. Sean Duffy, Omada's CEO, co-founded the company in 2012 with Andrew DiMichele and Adrian James, who have both moved on to other ventures. Omada's revenue increased 57% in its first quarter to $55 million from $35.1 million a year earlier, the filing said. For 2024, revenue rose 38% to $169.8 million from $122.8 million the previous year. The company's net loss narrowed to $9.4 million in the first quarter from $19 million a year ago. "To our prospective shareholders, thank you for learning more about Omada," Duffy said in the prospectus. I invite you to join our journey." The company will trade on the Nasdaq under the ticker symbol "OMDA." Morgan Stanley, Goldman Sachs and JPMorgan Chase are leading the offering. Omada's top shareholders are U.S. Venture Partners, Andreessen Horowitz and Fidelity.
Reuters
6 days ago
- Business
- Reuters
Omada Health targets valuation of over $1 billion in US IPO
May 29 (Reuters) - Virtual chronic care provider Omada Health is targeting a valuation of about $1.1 billion in its initial public offering in the United States, signaling a comeback for capital markets after several months of slowdown in listings. The company said on Thursday it would sell 7.9 million shares in a range of $18 to $20 per share, potentially fetching up to $158 million if priced at the upper limit. While U.S. President Donald Trump's tariff whiplash has roiled markets and cast a shadow on new listings, companies in sectors perceived as less sensitive to economic headwinds are pushing ahead with their initial public offerings. The San Francisco, California-based company, last raised $192 million in a Series E funding round in 2022. Omada has applied to list its common stock on the Nasdaq under the symbol "OMDA". Goldman Sachs, Morgan Stanley and Barclays are among the underwriters for Omada's offering.
Yahoo
6 days ago
- Business
- Yahoo
Omada Health targets valuation of over $1 billion in US IPO
(Reuters) -Virtual chronic care provider Omada Health is targeting a valuation of about $1.1 billion in its initial public offering in the United States, signaling a comeback for capital markets after several months of slowdown in listings. The company said on Thursday it would sell 7.9 million shares in a range of $18 to $20 per share, potentially fetching up to $158 million if priced at the upper limit. While U.S. President Donald Trump's tariff whiplash has roiled markets and cast a shadow on new listings, companies in sectors perceived as less sensitive to economic headwinds are pushing ahead with their initial public offerings. The San Francisco, California-based company, last raised $192 million in a Series E funding round in 2022. Omada has applied to list its common stock on the Nasdaq under the symbol "OMDA". Goldman Sachs, Morgan Stanley and Barclays are among the underwriters for Omada's offering.
