Buzzy primary care company One Medica just popped in its stock market debut after raising $245 million in its IPO, Business Insider - Business Insider Singapore

• One Medical popped in its stock-market debut, opening at $18 a share Friday after pricing its shares at $14 on Thursday night, raising $245 million.
• The company trades under the ticker “ONEM.”
• One Medical operates primary-care practices that charge a $200 annual fee and also bills your health insurance.
• Visit Business Insider’s homepage for more stories.

Primary care company One Medical popped in its stock market debut Friday morning.

On Thursday, One Medical priced its shares at $14 apiece, the low end of its expected range of $14-$16 a share. The stock started trading at $18 a share late Friday morning, jumping to as much as $20.22 a share.

One Medical sold 17.5 million shares, raising $245 million in the offering. The pricing values One Medical at roughly $1.7 billion, based on the more than 122 million of shares outstanding disclosed in its S-1.

Read more: Here are the investors and execs at One Medical who stand to make the most in the IPO

One Medical’s approach to primary care

One Medical was founded by Tom Lee, who served as the company’s CEO until 2017. Current CEO Amir Rubin joined One Medical in 2017 after working as an executive at UnitedHealth Group’s Optum division. Before that, he was the CEO of Stanford Health Care.

Lee, for his part, has founded a new healthcare startup called Galileo, which offers a mix of online and in-person care. The aim is to do a better job of taking care of sicker people in the government-funded healthcare programs Medicare and Medicaid.

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When One Medical opened for business in San Francisco in 2007, its goal was to upend the way people got medical care by making it easy and convenient to see a doctor. The company charges a $200 annual fee and bills your insurance. One Medical had 397,000 members and operated in 77 locations as of September 30, the filing says.

The company’s net losses deepened as membership climbed, the filing shows. From 2017 to 2018, losses widened from $31.7 million to $44.4 million. For the first nine months of 2019, One Medical’s net loss was $34.2 million.

Read more: I became a member of One Medical, a primary-care practice that charges a $200 annual fee and has plans to double over the next two years. Here’s what it was like.

One Medical’s top investors going into the IPO include The Carlyle Group, which owns 26.8%, Benchmark Capital, which owns 13%, Oak Investment Partners, Lee, DAG Ventures, GV, JPMorgan, and Maverick Fund.

JPMorgan Chase and Morgan Stanley led the IPO.