Amwell made its debut on the New York Stock Exchange today after announcing late Wednesday night the pricing for its upsized initial public offering of about 41.2 million shares of Class A common stock at $18 per share.
The updated pricing equates in total gross proceeds of approximately $742 million, before deducting underwriting discounts and commissions and offering expenses payable by Amwell.
Additionally, Amwell and other stockholders released about 6.2 million shares up for purchase for a 30-day period by underwriters. If the underwriters purchase all of the additional shares, Amwell could raise $853.3 million.
Initially, Amwell planned to sell 35 million shares between $14 and $16 with up to 5.2 million additional shares for underwriters.
The shares hit the market today under the symbol “AMWL” and the offering is expected to close on September 21, according to the company.
WHY THIS MATTERS
When companies upsize their IPO to increase the size of the offering, it typically means the demand for the stock is high, according to Nasdaq.
Demand for digital health has been high as of late, with the space raising $5.4 billion in the first half of 2020, according to a report from Rock Health.
THE LARGER TREND
Amwell filed to go public back in August after it inked a deal with Google. The deal included $100 million in funding from Google, a partnership agreement to be each other’s preferred telehealth provider and plans to collaborate on technology.
Nanox recently made headlines after being called out in a scathing investor report as a “complete farce.”
Other telemedicine companies on the public market include Teladoc, which went public in 2015. Most recently, the company absorbed the chronic care management company Livongo in an $18.5 billion merger.