Market Overview

GoodRx Surges 53% On Trading Debut After $1.1B IPO

Share:
GoodRx Surges 53% On Trading Debut After $1.1B IPO

The shares of GoodRx Holdings Inc. (NASDAQ: GDRX) skyrocketed on the first day of trading on the Nasdaq Stock Market after its initial public offering on Wednesday.

What Happened: The digital healthcare platform priced 34.6 million shares at $33 each in the IPO — suggesting a raised amount above $1.1 billion.

GoodRx offered 23.4 million of the total shares in the offering while existing investors sold another 11.2 million shares.

The company that helps customers find cheaper prices for prescription drugs and other medical services said it expects net proceeds of about $725 million after cutting underwriting discounts and other expenses and commissions.

Morgan Stanley (NYSE: MS), JPMorgan Chase & Co. (NYSE: JPM), Barclays PLC (NYSE: BCS), and a subsidiary of Goldman Sachs Group Inc. (NYSE: GS) are acting as lead bookrunners for the IPO.

The underwriters can exercise an over-allotment option to purchase 5.2 million additional shares within 30 days of the offering.

Why It Matters: GoodRx’s offering comes amid a busy month for IPOs.

Telehealth platform American Well Corp. (NYSE: AMWL), better known as Amwell, reported net proceeds of $922 million from its IPO earlier this week, including a $100 million investment from Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google LLC.

Cloud-based software platform Snowflake Inc. (NYSE: SNOW) raised about $3.4 billion in its high-profile IPO last week.

Other IPOs this month include Unity Software Inc. (NYSE: U), Sumo Logic Inc. (NYSE: SUMO), and JFrog Ltd. (NASDAQ: FROG). Peter Thiel’s Palantir Technologies Inc. is also set to debut on Sept. 30 on Nasdaq in a direct listing.

GoodRx was co-founded by former Facebook Inc. (NASDAQ: FB) Vice-President of Product Doug Hirsch in 2011.

Price Action: GoodRx shares closed 53.03% higher at $50.50 in the regular session on Wednesday. The stock dropped about 3.9% in the after-hours session at $48.55.

Photo courtesy: GoodRx

 

Related Articles (GDRX)

View Comments and Join the Discussion!

Posted-In: Digital Health And Wellness Trading DebutNews Penny Stocks Health Care IPOs Tech General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com