Last week we featured how Hinge Health is preparing for its public debut while digital health rivals remained on the sidelines. Now, startups are officially moving.
The San Francisco-based company filed an updated prospectus on Tuesday, revealing plans to raise up to $437 million through the IPO. Hinge will price Class A common stock between $28 and $32 per share, offering approximately 13.7 million shares.
If there is a price for the shares in the middle of that range, the Company will value $2.42 billion based on the issued Class A and B shares. That number can shift depending on the complete dilution.
“Based on the number of issued shares in Class A and Class B after offering, we value the transaction as $2.42 billion in the middle of the range, but that number could be fully diluted and high,” CNBC reported.
Digital Therapy Startup Hinge Health pushes $437 million IPO despite volatile market
Founded in 2014, Hinge Health builds software to help you recover from musculoskeletal injuries, manages chronic pain and consists entirely of post-surgery rehabilitation from home. Co-founders Daniel Perez and Gabriel Mecklenburg started the company after a long recovery. Mecklenburg after a judo accident after colliding with a car at the age of 13.
The startup quietly submitted its first prospectus in March. A few weeks later, President Donald Trump rolled out a wide range of tariff plans that rattles the market, urging companies like Klarna and StubHub to hold off IPOs. The hinge is not waiting.
Hinge, which currently has a team of 1,400 people and headquarters in San Francisco, bets that it can break through investors’ hesitation.
On the other hand, hinge is not alone. Another digital health company, Omada Health, also submitted it for release on Friday. Both products may indicate that most health technology companies’ closed IPO windows may be cracked after 2021.
Hinge shows strong growth that led to its offering. The company reported $123.8 million in first quarter revenue, up 50% from the same period last year. Revenue for the fourth quarter was $117.3 million, a 44% jump from the previous year.
Hinge will be listed on the New York Stock Exchange under Ticker HNGE.
The company has raised more than $1 billion so far from supporters such as Tiger Global Management and Coatue Management, and has achieved a private valuation of $6.2 billion as of the October 2021 round. According to its filings, Insight Partners and Atomico are the largest institutional shareholders, with 19% and 15% stakes, respectively.
Hinge traces its roots to the UK. In the UK, Perez and Mecklenburg (one of the former doctoral students) first place their ideas on paper. They built their first prototype within a few months, but they haven’t slowed down since.
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