Communications network Doximity valued at over $7 bln as shares jump in debut
June 24 (Reuters) - Doximity Inc was valued at over $7 bln at start of trading on the New York Stock Exchange on Thursday, as shares of the social network for doctors opened more than 58% above their offer price.
The company's stock opened at $41.17 per share, up from the initial public offering (IPO) price of $26 per share.
Healthcare-focused technology companies including Doximity have benefited from pandemic-led tailwinds and have found favor with investors.
Doximity priced 23.3 million of its Class A shares at $26 apiece, raising nearly $606 million in its IPO. Excluding the amount raised from shares offered by one selling stockholder, the company earned about $494 million.
Co-founded and led by Jeffrey Tangney, Doximity says its platform allows doctors to communicate securely with each other. It had more than 1.8 million members on its platform as of March 31, its IPO prospectus stated.
The company also reserved 15% of its Class A shares to be sold at the IPO price to certain eligible physicians who use its services.
Those shares would be sold through Fidelity Capital Markets and would not be subject to lock-up restrictions, the company said.
Morgan Stanley, Goldman Sachs and J.P. Morgan Securities were the lead underwriters for the IPO. (Reporting by Niket Nishant in Bengaluru; Editing by Vinay Dwivedi)
