Omada Health Aims to Raise $158M in IPO, Valued at $1.1B

Omada Health, a digital health company specializing in chronic disease management, has announced plans to go public through an initial public offering (IPO). The company aims to raise up to 158 million dollars, with a valuation of approximately 1.1 billion dollars based on the upper end of the proposed price range.

Omada Health, which focuses on providing virtual care solutions for pre-diabetes, diabetes, and hypertension, submitted its prospectus earlier this month. The latest filing indicates that the company expects to price its shares between 18 and 20 dollars per share. Omada plans to offer 7.9 million shares of common stock in this IPO, with the actual offering size and price subject to adjustment. The total market capitalization could be higher after full dilution. The IPO is expected to be completed next week.

Omada Health's business model is positioned as an "in-between care model," designed to complement a broader healthcare ecosystem. The company was founded in 2012 by CEO Sean Duffy, along with co-founders Andrew Dimick and Adrian James. Dimick and James have since moved on to other ventures.

According to the prospectus, Omada Health's first-quarter revenue grew by 57% year-over-year to 55 million dollars, compared to 35.1 million dollars in the same period last year. For the full year 2024, the company projects revenue growth of 38% to 169.8 million dollars, up from 122.8 million dollars in the previous year. The company's net loss narrowed from 19 million dollars in the same period last year to 9.4 million dollars.

Omada Health will be listed on the Nasdaq under the ticker symbol "OMDA." The lead underwriters for the offering are Morgan Stanley, Goldman Sachs, and JPMorgan Chase. Major institutional shareholders include Andreessen Horowitz, Fidelity Investments, and New Enterprise Associates.

Omada Health's IPO comes at a time when the digital health sector is experiencing renewed interest from investors. Hinge Health, a digital physical therapy startup, recently completed its IPO on the New York Stock Exchange. Omada Health's focus on chronic disease management positions it as a key player in the growing digital health landscape, offering innovative solutions for patients and healthcare providers alike.