M&A was the only viable option for digital health companies in the past years due to the lack of initial public offerings (IPOs). However, all that changed this year with a slew of IPOs and announcements of plans to go public. So far this year, a total of 12 digital health companies have gone public (2 SPACs and 10 IPOs) compared to six in 2020.
Of the 12 companies that went public, 23andME and Hims & Hers went public via the SPAC deals, and ten digital health companies – Bright Health Group Convey Health Solutions, Dialogue Health Technologies, Doximity, MCI Onehealth, Mednow, Movano, Physitrack, Privia Health, Signify Health, took the traditional IPO route.
Digital Health IPO activity during 2021
Privia Health, a technology-driven practice management solutions provider, closed its initial public offering at $131.7 million. The company offered 22,425,000 shares of its common stock at a public offering price of $23.00 per share. Privia Health shares began trading on the Nasdaq Global Select Market on April 29, 2021, under the ticker symbol “PRVA.”
Doximity, an online social network for doctors, raised $606 million through its IPO. Doximity sold 19 million shares for $26 apiece, above its projected range of $20 to $23, and an existing investor sold another 4.3 million. The stocks are trading on NYSE, under the ticker symbol of “DOCS.”
Bright Health, a telehealth company, raised $924.3 million through its initial public offering of 51.3 million shares at $18 per share. The company now listed its shares on the New York Stock Exchange (NYST) under the symbol “BHG.”
Signify Health, a value-based care services platform, closed its initial public offering (IPO) of 27,025,000 shares of its Class A common stock at $24 per share for net proceeds of approximately $609.7 million. Signify Health’s Class A common stocks are trading on the NYSE under the ticker symbol SGFY.
Physitrack, a cloud-based digital patient engagement platform, went public on the Nasdaq First North Premier Growth Market with an original offering of SEK 40 ($4.69) per share. The company’s IPO included just under 4.4 million newly issued shares worth approximately SEK 175 ($20 million). The shares are trading on Nasdaq First North Growth Market Premier market under the ticket “PTRK.”
DNA testing and analytics technology company 23andMe and VG Acquisition Corp. (VGAC), a SPAC, announced the completion of their business combination. The combined company called 23andMe Holding Co. started trading on The Nasdaq Global Select Market under the new ticker symbol “ME” for its Class A Common shares and “MEUSW” for its public warrants. 23andMe raised approximately $592 million in gross proceeds through its business combination.
Convey Health Solutions, a healthcare practice management solution platform, closed its initial public offering (IPO) of 13,333,334 shares of its common stock at a public offering price of $14 per share, raising $187 million. Convey Health’s common stocks are listed on the NYSE under the ticker symbol “CNVY.”
Dialogue Health Technologies, a virtual healthcare and wellness platform, closed the initial public offering (IPO) by selling a total of 8,334,000 common shares at $12.00 per share, for total gross proceeds of approximately C$100 million ($79 Million).
Movano, a maker of smartwatch-like wearable that uses radiofrequency technology to measure blood glucose, raised $42.5 million through an initial public offering (IPO) of 8,500,000 shares of its common stock at a public offering price of $5.00 per share.
Hims & Hers, an online direct-to-consumer telehealth company, has completed its business combination with blank-check company Oaktree Acquisition Corp at a $1.6 billion valuation. As a result of the business combination, Hims & Hers received proceeds of approximately $279.5 million. As part of the business combination, Hims & Hers started trading on NYSE under the ticker of “HIMS.”
MCI Onehealth Technologies, a telehealth company, announced the successful closing of its initial public offering (IPO) of an aggregate of 6,000,000 Class A Subordinate Voting Shares of MCI Onehealth at C$5 (~$4) per Offered Share for aggregate gross proceeds of C$30 million (~$24 million).
Mednow, a Vancouver-based telemedicine company, closed an initial public offering (IPO) of an aggregate of 5,492,325 units of the company at $6.75 per unit for aggregate gross proceeds of approximately C$37 million (~$29 million). The company started trading on the TSX Venture Exchange under the symbol “MNOW.”