One Medical’s $100M IPO sets the 2020 pace

One Medical’s $100M IPO sets the 2020 pace
Written by:
Damian Wood
5th January, 22:41
Updated: 5th January, 22:42
  • One Medical filed its Form S-1 with the SEC last Friday.
  • The medical company plans to raise about $100M to finance its expansion ambition.
  • Its 2018 revenues up to September rose by 29% to $198.9.

One Medical last Friday filed its Form S-1 with the US Securities Exchange Commission (SEC) and went down in history as one of the first listings in the new decade.

One Medical was established in 2007 and operates primary care clinics in nine locations across the United States. The firm is planning to raise about $100 million through its IPO.

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According to its filed prospectus, One Medical will list on Nasdaq under the ticker “ONEM”. Its underwriters include Morgan Stanley and J.P. Morgan.

The numbers

One Medical maintains a register of members who pay a yearly fee of $200, with a clientele drawn from individuals and corporates.

The company also generates its revenue through billing insurers and offering cash-only options for uninsured patients.

According to its filed report, revenue jumped during the first three quarters of 2019 to $198.9 million or by 29%. However, the firm recorded an increase in losses from 2018. Its books indicate a 2019 (up to September) loss of $33.1 million, up from the previous year’s $26 million.

About 60% of its revenue is consumed by care providing costs, denoting a ballooning budget for hiring and retaining medics.

The tech-backed medical company will be making its debut on Nasdaq at a time when several listed companies are struggling to remain afloat. Ride-hailing unicorns Lyft and Uber are both barely growing their shareholders’ investments since listing. Another digital healthcare entity called Livongo also listed last in July and has been trading below its IPO.

One Medical operates 77 medical offices serving more than 397,000 members and is focused on adopting digital services, including virtual consults, online scheduling, and fully electronic records. The firm is also keen on carving a name for same-day appointments and developing an intuitive mobile application to serves its thousands of users.

Having positioned itself as one of the silicon giants, One Medical has previously managed to raise funds from Benchmark, Alphabet (formerly Google ventures), and a few other ventures.

In October last year, CNBC reported that the medical firm was planning to issue an IPO through its handlers, J.P Morgan and Morgan Stanley. A 2018 private valuation of the company placed it at $1.5 billion.

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