Adds valuation, company background
Sept 17 (Reuters) - American Well Corp's AMWL.N shares rose 42% in their debut on the New York Stock Exchange on Thursday, after the telehealth company raised $742 million in its initial public offering.
The stock opened at $25.52 giving the company a market value of $5.62 billion.
On Wednesday, the firm priced its offering of 41.2 million shares at $18 apiece, above its expected range of $14 to $16.
Amwell had earlier planned to sell 35 million shares in its IPO.
Amwell connects and facilitates insurers, patients and innovators to deliver greater access to more affordable and higher quality medical care.
The IPO market has bounced back in recent months after a dry spell during the COVID-19 pandemic as stock markets around the world complete their recovery from coronavirus-induced lows and trade at record levels.
Boston, Massachusetts-based Amwell's client base includes more than 240 health systems consisting of 2,000 hospitals and 55 health plan partners.
For the six months ended June 30, the company posted revenue of $122.3 million, up 77% from a year ago. Net loss attributable to the company was $111.04 million, wider than $40.7 million a year earlier.
Morgan Stanley, Goldman Sachs & Co LLC and Piper Sandler are the lead underwriters of the IPO.
(Reporting by Abhishek Manikandan in Bengaluru; Additional reporting by Madhvi Pokhriyal; Editing by Shinjini Ganguli and Maju Samuel)
((Abhishek.Manikandan@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6182 2702;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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