Omada shares rise 21% in Nasdaq debut after health tech company's IPO

Omada Health shares roseate 21% successful their Nasdaq debut Friday aft the virtual chronic attraction institution priced its banal astatine $19 per stock successful its IPO.

The banal opened astatine $23 and closed astatine that aforesaid level, reaching a precocious of $28.40 successful the mediate of the day.

The institution said successful a press release precocious Thursday that it sold 7.9 cardinal shares successful the offering, amounting to astir $150 million. The pricing was successful the mediate of the expected range, and valued the institution astatine conscionable implicit $1 billion, though that fig could beryllium higher connected a afloat diluted basis.

Omada, founded successful 2012, is trading nether ticker awesome "OMDA." The institution offers virtual attraction programs to enactment patients with chronic conditions similar prediabetes, diabetes and hypertension. Sean Duffy, Omada's CEO, co-founded the institution with Andrew DiMichele and Adrian James, who person some moved connected to different ventures.

It's the 2nd integer wellness archetypal nationalist offering successful a substance of weeks pursuing an extended drought for the industry. Digital carnal therapy startup Hinge Health debuted connected the New York Stock Exchange in May. Hinge is presently trading astatine $38.50 aft selling shares successful its IPO astatine $32.

The tech IPO marketplace has been showing signs of life, with Hinge being 1 of the latest offerings. On Thursday, shares of crypto institution Circle Internet soared 168% successful their NYSE debut. Fintech institution eToro started trading past month, and Chime Financial, which offers online banking services, is set to deed the marketplace adjacent week.

"It's a surreal moment, of course, due to the fact that you conscionable get to spot each these radical who've fixed truthful overmuch to the business," Duffy said successful an interrogation with CNBC. "I conscionable consciousness truly proud."

Earlier successful the day, Duffy told CNBC's "Squawk Box" that, "We similar the standard of the model, we similar the standard of the business, arsenic we felt propulsion from the superior markets."

Omada's gross accrued 57% successful its archetypal 4th to $55 cardinal from $35.1 cardinal a twelvemonth earlier, according to its prospectus. For 2024, gross roseate 38% to $169.8 cardinal from $122.8 cardinal the erstwhile year. The company's nett nonaccomplishment narrowed to $9.4 cardinal successful the archetypal 4th from $19 cardinal a twelvemonth ago.

U.S. Venture Partners, Andreessen Horowitz and Fidelity's FMR LLC are the largest extracurricular shareholders successful the company, each owning betwixt 9% and 10% of the stock.