Cue Diana Ross, as San Francisco-based virtual health provider Omada Health is “coming out” as a public company.
The company debuted on June 6, ending the day at $19 per 7.9 million shares. But the next morning its stock rose to $23 per share, a 21% jump that the company is touting alongside a $150 million fundraise following its IPO.
Reuters now values the company at just under $1.3 billion, up from $1.1 billion before going public, according to Business Insider.
Omada works to support patients with diabetes, hypertension, prediabetes, and musculoskeletal issues. In 2023, it launched a GLP-1 program for patients with obesity.
On May 20, the company also announced a new AI agent called OmadaSpark, which will provide patients with nutrition education, support, and care for healthy eating.
The company declined to comment, citing the “post-IPO quiet period.” But John Beadle, co-founder and manager partner of investment firm Aegis Ventures, told Fierce Healthcare Omada is “priced for success.”
“Notably, it is the only venture-backed IPO in the current market where the IPO price was set above the most recent private market valuation,” he told Fierce, adding that Omada “demonstrated superb discipline and rigor” in how it structured its offering.
Morgan Stanley, Goldman Sachs, and JPMorgan were lead book-running managers for the IPO.
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