Teladoc raises $157M in first IPO for mobile-enabled video visits

By Aditi Pai
06:17 am
Share

TeladocVideoVisitDallas, Texas-based video visits telehealth company Teladoc has raised $156.8 million in its IPO and is set to begin trading under the symbol "TDOC" on the New York Stock Exchange today. At the last minute the company increased both the price of its shares to $19 and the number of shares it was selling to 8.3 million.

In the company's previous filing, Teladoc priced its shares between $15 and $17 and planned to sell 7 million shares.

Teladoc also previously offered its underwriters the option to purchase 1.05 million shares, but underwriters now have the option, for a period of 30 days, to purchase up to nearly 1.24 million shares of common stock. If the underwriters purchase the additional shares, the IPO's total amount raised would hit $180.3 million.

When Teladoc debuted on the NYSE this morning it began trading at $28 a share, well above its $19 IPO price.

Teladoc offers patients an alternative to a standard, in-person doctor’s visit. When a patient needs a doctor but doesn’t want to make an appointment, he or she can use their Teladoc app to schedule a remote visit. The visit includes a one-on-one consultation with a doctor over phone or via video chat. The patient's employer or health plan may also subsidize the visit if they have an agreement with Teladoc, but the visit's price tag is close to that of a deductible -- about $40.

News first broke about Teladoc’s IPO in late April, but its initial filing was private. In June, the first public draft of its S-1 filing was published to the SEC’s site, revealing a bevy metrics about the private company, including its financial performance to date and details surrounding the acquisitions it has made in the past few years.

Teladoc posted a net loss of $6 million on topline revenues of $19.9 million in 2013, and a net loss of $17 million on topline revenues of $43.5 million in 2014. For the first three months of 2015, Teladoc posted revenues of nearly $16.5 million and a net loss of $12.7 million.

Shortly after Teladoc published its first public draft of the filing, the company disclosed that they had acquired Scottsdale, Arizona-based Stat Health Services, which offers the online doctor visit service Stat Doctors. At the time, they wrote that they expected to acquire the company for $30.5 million, comprised of $13.7 million of cash and $16.8 million of stock.

That same day, American Well filed a suit against Teladoc for alleged patent infringement. American Well’s lawsuit, filed today in Massachusetts District Court, alleges that Teladoc’s technology platform willingly infringes on a 2007 American Well patent. The suit asks for triple damages plus court fees, as well as an injunction against Teladoc continuing to do business.

Jordan Proto-React White/White/White