Benefits Platform Accolade Raises $220M In IPO

Update: Accolade shares surged when trading started, going as high as $36.89 before closing for the day at $29.70.

Accolade Inc. priced its initial public offering of 10 million shares at $22 per share, raising $220 million. The company develops personalized technology to help people better understand their workplace health care benefits.

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Shares were to begin trading Thursday on The Nasdaq Global Select Market under the ticker symbol “ACCD.” The offering is expected to close on July 7, the company said. In addition to the initial 10 million shares, the company has granted the underwriters a 30-day option to purchase up to 1.5 million additional shares.

Founded in the Philadelphia suburbs in 2007, Accolade has raised $237.3 million in venture-back funding to date, according to Crunchbase data. The company last raised funds in 2019, a $20 million corporate round led by Humana. That was preceded by a $50 million Series F led by Andreessen Horowitz, Carrick Capital Partners, Madrona Venture Group and McKesson Ventures.

In a company blog post, Accolade CEO Rajeev Singh said the company’s technology supports 1.7 million people.

“By contracting with employers across the country for more than a decade, we’ve helped consumers (our customers’ employees and their family members) get the health care experience they deserve—one that puts their needs first, every time,” he said.

Accolade filed its Form S-1 with the U.S. Securities and Exchange Commission on Feb. 28.

The IPO filing reveals the company offered 1.3 million more shares than anticipated and priced it above the $19 to $21 range. Its financial data showed sharp revenue growth paired with decreasing losses. The company had revenue of $132.5 million in its last fiscal year, which ended Feb. 28. That’s a sharp increase from the $94.8 million in revenue posted for the prior fiscal year. Meanwhile, Accolade posted a net loss of $51.4 million in its most recent fiscal year, a slight decrease from its $56.5 million loss in the year-ago period.

Illustration: Li-Anne Dias