One Medical, a US-based primary healthcare provider backed by internet technology conglomerate Alphabet, is going public today in a $245m initial public offering on the Nasdaq Global Select Market.
The IPO consists of 17.5 million shares priced at $14.00 each, at the foot of its $14 to $16 range, valuing One Medical at approximately $1.72bn. The underwriters have a 30-day option to acquire almost 2.63 million shares more which would raise the size of the offering to just short of $282m.
Listed under the name 1Life Healthcare, One Medical runs a primary care service with nearly 400,000 members who can access care through telehealth services available at all hours of the day, in addition to physicians at brick-and-mortar surgeries in nine markets.
The company made a $34.1m loss in the first nine months of 2019, from $199m in revenue, and signed a care coordination collaboration deal with hospital operator Partners HealthCare earlier this month.
Private equity firm The Carlyle Group provided One Medical’s most recent funding, investing $220m in primary funding alongside $130m in secondary share purchases, in a 2018 deal that took its total equity financing to $400m, valuing it at $1.5bn according to CNBC.
Investment bank JP Morgan’s Asset Management division led a $65m round for the company at a valuation of more than $1bn in 2015, the year after a $40m round led by asset manager Redmile Group.
One Medical had already secured $30m in a 2013 series F round led by GV, the Alphabet unit then known as Google Ventures, which participated alongside Benchmark, DAG Ventures, Oak Investment Partners and Maverick Capital.
GV’s stake will be diluted from 5.9% to 5% in the offering. One Medical’s other notable shareholders are Carlyle Group (22.9% post-IPO), Benchmark (11.1%), Oak Investment Partners (9.8%), Thomas H. Lee (6.6%), DAG Ventures (6.5%), JP Morgan (5.2%) and Maverick Fund (4.4%).
JP Morgan and Morgan Stanley are lead bookrunning managers for the IPO while Allen & Company, Citigroup, Piper Sandler, Wells Fargo Securities and William Blair are bookrunning managers and Baird and SunTrust Robinson Humphrey co-managers.
Photo courtesy of 1Life Healthcare, Inc.
