Doximity, a social network for doctors, plans to raise nearly $536 million through a U.S. initial public offering (IPO) at about a $4 billion valuation.
The company plans to sell 23.3 million shares priced between $20 and $23 per share. The offering consists of 19,010,750 shares of Class A common stock offered by Doximity and 4,289,250 shares of Class A common stock sold by an existing stockholder.
The underwriters will have a 30-day option to purchase an additional 3,495,000 shares of Class A common stock from Doximity at the initial public offering price, less underwriting discounts, and commissions.
Doximity’s Class A common stock is expected to trade on the New York Stock Exchange under the symbol “DOCS.”
Founded in 2010, Doximity offers a cloud-based digital social network for medical professionals and free membership for physicians. It has more than 1.8 million members on its platform as of March 31, the filing showed.
Morgan Stanley & Co. Goldman Sachs & Co. and J.P. Morgan Securities acted as joint lead book-running managers for the proposed offering. Piper Sandler & Co. and William Blair & Company acted as joint book-running managers for the proposed offering.
Canaccord Genuity, Needham & Company, Raymond James & Associates, and SVB Leerink acted as co-managers for the proposed offering.
IPO’s have been rare in digital health, and most of the recent deals to go public have been through special purpose acquisition companies (SPACS).
More recently, consumer genomics company 23andMe began publicly trading after completing its merger with special purpose acquisition company VG Acquisition Corp. The company, which is trading under the ticker symbol “ME,” raised around $592 million in gross proceeds from the business combination. In addition, British telehealth company Babylon has agreed to go public in the United States via a merger deal with Alkuri Global Acquisition Corp (Alkuri Global), a special purpose acquisition company led by former Groupon chief Rich Williams, at an equity value of approximately $4.2 billion.
Digital health companies raised $7.2 billion in Q1 2021, according to Mercom’s Q1 2021 Digital Health Funding and M&A Report.