GoodRx Enters the Market With a Bang

GoodRx Holdings Inc. (NASDAQ: GDRX) entered the market with a bang on Wednesday. The company originally priced its 34.6 million share initial public offering at $33 apiece, above the expected price range of $24 to $28. However, shares debuted at $46, well above the pricing.

This company provides Americans will health care services and prescriptions through its digital platform. Essentially, this platform connects consumers with affordable and convenient health care products and services. These include telehealth, mail-order prescriptions, doctor visits and lab tests.

The company boasted 4.4 million monthly active consumers and 15 million monthly visitors for the second quarter of 2020. There was roughly $20 billion of cumulative consumer savings generated for GoodRx consumers.

The gross merchandise value generated by the prescription offering, which accounts for the vast majority of GoodRx’s revenue, was $2.5 billion in 2019. The firm’s revenue has grown at a compound annual growth rate of 57% since 2016 and reached $388 million in 2019, up from $250 million in 2018.

The company intends to use the net proceeds from this offering to grow the business and for general corporate purposes.

The underwriters for the offering were Morgan Stanley, Goldman Sachs, JPMorgan, Barclays, BofA Securities, Citigroup, Credit Suisse, RBC Capital Markets, UBS Investment Bank, Cowen, Deutsche Bank, Evercore ISI, Citizens Capital Markets, KKR, LionTree, Raymond James, SVB Leerink, Academy Securities, Loop Capital Markets, R. Seelaus and Ramirez.

GoodRx stock traded up about 50% at $49.40, in a range of $45.55 to $49.51 on the day. About 12 million shares had moved as of 12:45 p.m. Eastern.

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