US-based patient engagement technology provider Phreesia priced its shares at $18 on Wednesday and raised more than $167m in proceeds when it began trading on the New York Stock Exchange yesterday.
The offering provided exits to corporate venturing units BlueCross BlueShield Venture Partners, Ascension Ventures and Echo Health Ventures.
The company sold approximately 9.3 million shares, made up of 7.8 million newly issued stock and up to 1.5 million shares sold by certain investors owning more than 5%.
Shares briefly reached a high of $27.59 on the first day of trading, before closing at $25.20, giving Phreesia a market cap of $882m. Pheesia had initially filed for a $125m IPO in June, before setting its range at $15 to $17 earlier this month.
Phreesia has developed cloud-based software for hospitals and care providers to manage their patient intake. The platform enables organisations to optimise staffing while improving clinical care and boosting profitability.
The company has allocated approximately $18.1m to paying a cash dividend to shareholders of senior convertible preferred stock and will use another $17.7m to repay its revolving credit line with Silicon Valley Bank.
The offering follows approximately $109m in equity financing. Phreesia most recently closed a $34m funding round in 2017 backed by Echo Health Ventures, a vehicle created by hospital manager Cambia Health Solutions with health insurer Blue Cross Blue Shield of North Carolina’s Mosaic Health Solutions vehicle.
CHV – backed by care provider Ascension Health’s Ascension Ventures unit – and LLR Equity Capital Partners also took part in the 2017 round.
LLR had previously led a $30m series E round in 2014, investing alongside Ascension Ventures and HLM Venture Partners.
Ascension Ventures and BlueCross BlueShield Venture Partners – which invests on behalf of multiple BlueCross BlueShield insurers – had already contributed to a $20m series B round in 2010 alongside HLM, VantagePoint Venture Partners, Long River Ventures and Polaris Venture Partners.
CHV owned 10.8% ahead of the offering, which has been diluted to 8.4% – and may drop to 7.7% if CHV fully exercises its option to sell shares. Echo Health Ventures held 9%, which has been reduced to 7% and may fall to 6.5% if it also exercises its option.
LLR is the company’s largest shareholder (18.5% post-IPO, or down to 17.1% with full exercise of the option), HLM (13.5% or 12.4%), Polaris (11.3% or 10.4%) and VantagePoint (5.5% or 5%).
JP Morgan Securities, Wells Fargo Securities, William Blair, Allen & Company and Piper Jaffray are the underwriters for the offering, which is expected to close on July 22. They have been granted a 30-day option to acquire up to 1.4 million of additional shares.
