One Medical’s stock closed at $22.07 on its first day of trading, nearly 58 percent higher than its initial public offering price.
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The health care startup priced its shares at $14 on Thursday, at the low end of its range, and its stock opened at $18 on its first day of trading. The company raised $245 million by selling 17.5 million shares at its IPO price before it began trading on the Nasdaq on Friday.
Shares of the company were trading at $21 at noon on Friday, 50 percent higher than its IPO price, according to Yahoo Finance.
While the stock surging on the first day of trading shows public market investors have an appetite for the company, it also means One Medical left money on the table. The company could have priced its shares at the top of its range ($16) to raise $280 million before trading began, and still seen its stock pop by 12.5 percent when it opened on Friday at $18.
One of the first companies to file to go public this year, One Medical filed its S-1 statement with the Securities and Exchange Commission on Jan. 3. Now, it’s one of the first venture-backed startups to start trading publicly in 2020. J.P. Morgan and Morgan Stanley were the lead underwriters for the IPO.
One Medical has 77 offices (including employer on-site clinics) in New York, Chicago, Boston, Los Angeles, Phoenix, San Diego, Seattle, Washington, D.C., and the greater Bay Area.
Illustration Credit: Li-Anne Dias