Related News

Optical illusion: Think you have sharp eyesight? Spot the frog in this picture in under 5 seconds!

Optical illusions get our brain to exercise, and can be the perfect test of our observational skills and keen eye. An optical illusion is a visual phenomenon where the brain

8 magical tips and tricks to boost your English grammar skills

Learn English (the easy way) For many people across the world, learning and speaking English is a hassle. The complex grammar, the different pronunciations, the long sentences, and much more,

5 silent ways anger is ruining your life without you realizing it

In today’s fast-paced world, where deadlines never stop and personal space is often overlooked, anger has become a part of everyday life. It doesn’t always show up as shouting or

Omada shares open at $23 in Nasdaq debut after company’s IPO

Word Count: 353 | Estimated Reading Time: 2 minutes

Omada Health smart devices in use.

Courtesy: Omada Health

Omada Health shares opened at $23 in their Nasdaq debut on Friday after the virtual chronic care company priced its stock at $19 per share in its IPO.

The company said in a press release late Thursday that it sold 7.9 million shares in the offering, amounting to about $150 million. The pricing was in the middle of the expected range, and valued the company at just over $1 billion, though that number could be higher on a fully diluted basis.

Omada, founded in 2012, is trading under ticker symbol “OMDA.” The company 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.

More CNBC health coverage

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. Hinge is currently trading at $38.20 after selling shares in its IPO at $32.

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.

“Today is the right moment for us,” Duffy told CNBC’s “Squawk Box” on Friday. “We like the scale of the model, we like the scale of the business, equally we felt pull from the capital markets.”

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.

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.

WATCH: Omada Health CEO Sean Duffy on IPO