Amwell, a US-based telehealth technology provider backed by electronics and medical technology producer Philips, insurance group Allianz and pharmaceutical firms Teva and Takeda, will raise $742m in its initial public offering today.
The company has increased the number of shares in the offering from 35 million to 41.2 million and priced them at $18.00, above the $14 to $16 range it set last week. Internet technology provider Google is investing $100m in a separate private placement.
Formally known as American Well, Amwell has built a telehealth technology platform that links patients with healthcare providers and health insurers. It manages telehealth operations for 55 health insurance plans and 150 healthcare systems.
The company increased revenue 77% year on year to $122m in the first half of 2020, though net losses near tripled to $113m in the same period.
The IPO proceeds will fund engineering and development work on Amwell’s software platform in addition to bolstering its automation, self-help and artificial intelligence technology, upgrading its sales and account management teams and moving into new business areas.
Amwell had received $690m in funding prior to the offering, having most recently closed a $194m round in May this year that included Takeda and Allianz X, the digital investment arm of Allianz. It had raised $59.9m in two months earlier according to a regulatory filing.
Philips was among the participants in a $291m funding round for the company in July 2018, after Allianz X and Allianz Partners’ Health Innovation Center had provided $59.2m in January the same year. Teva took part in an $81.2m round for the company in 2014, and Inventure Partners is also an investor.
Co-chief executives Ido and Roy Schoenberg each hold 50% of Amwell’s 32.9 million class B shares while the other shareholders own class A shares, the same class as the ones in the IPO.
Allianz will come out with 5.8% of the company’s class A shares, down from 7.4%, while Teva’s portion of the class A shares is being diluted from 6.9% to 5.5%.
The company will be listed on the New York Stock Exchange. Morgan Stanley, Goldman Sachs and Piper Sandler are lead joint book-running managers for the offering while UBS, Credit Suisse, Cowen and Berenberg are bookrunners.
The underwriters have the option over the next 30 days to buy more than 6.18 million shares from Amwell and its shareholders, potentially boosting the size of the offering to more than $853m.
