Omada Health prices IPO at $19 per share, in middle of expected range Clutch Fire

Omada Health priced its IPO at $19 per share on Thursday, in the middle of the expected range.

The virtual chronic care company said in a press release that 7.9 million shares are being sold in the offering, amounting to $150 million.

Omada, founded in 2012, will trade on the Nasdaq under the ticker symbol “OMDA.” The company filed its initial prospectus in May and updated the document with an expected pricing range of $18 to $20 per share. 

At the IPO price, Omada is worth about $1.1 billion, though that number could be higher on a fully diluted basis. That’s right around its private market valuation from 2022, when Omada announced a $192 million funding round that pushed its valuation above $1 billion.

U.S. Venture Partners, Andreessen Horowitz and Fidelity’s FMR LLC are the largest outside shareholders in the company, each owning between 9% and 10% of the stock.

Omada offers virtual care programs to support patients with chronic conditions like prediabetes, diabetes and hypertension. Sean Duffy, Omada’s CEO, co-founded the company with Andrew DiMichele and Adrian James, who have both moved on to other ventures.

It’s the second digital health IPO in a matter of weeks following an extended drought for the industry. Digital physical therapy startup Hinge Health debuted on the New York Stock Exchange in May.

The tech IPO market has been showing signs of life, with Hinge being one of the latest offerings. On Thursday, shares of crypto company Circle Internet soared 168% in their New York Stock Exchange debut. Fintech company eToro started trading last month, and Chime Financial, which offers online banking services, is set to hit the market next week.

Omada’s revenue increased 57% in its first quarter to $55 million from $35.1 million a year earlier, according to its prospectus. For 2024, revenue rose 38% to $169.8 million from $122.8 million the previous year.

The company’s net loss narrowed to $9.4 million in the first quarter from $19 million a year ago.

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