GoodRx Surges 53% On Trading Debut After $1.1B IPO

The shares of GoodRx Holdings Inc. GDRX skyrocketed on the first day of trading on the Nasdaq Stock Market after its initial public offering on Wednesday.

What Happened: The digital healthcare platform priced 34.6 million shares at $33 each in the IPO — suggesting a raised amount above $1.1 billion.

GoodRx offered 23.4 million of the total shares in the offering while existing investors sold another 11.2 million shares.

The company that helps customers find cheaper prices for prescription drugs and other medical services said it expects net proceeds of about $725 million after cutting underwriting discounts and other expenses and commissions.

Morgan Stanley MS, JPMorgan Chase & Co. JPM, Barclays PLC BCS, and a subsidiary of Goldman Sachs Group Inc. GS are acting as lead bookrunners for the IPO.

The underwriters can exercise an over-allotment option to purchase 5.2 million additional shares within 30 days of the offering.

Why It Matters: GoodRx’s offering comes amid a busy month for IPOs.

Telehealth platform American Well Corp. AMWL, better known as Amwell, reported net proceeds of $922 million from its IPO earlier this week, including a $100 million investment from Alphabet Inc. GOOGL GOOG subsidiary Google LLC.

Cloud-based software platform Snowflake Inc. SNOW raised about $3.4 billion in its high-profile IPO last week.

Other IPOs this month include Unity Software Inc. U, Sumo Logic Inc. SUMO, and JFrog Ltd. FROG. Peter Thiel’s Palantir Technologies Inc. is also set to debut on Sept. 30 on Nasdaq in a direct listing.

GoodRx was co-founded by former Facebook Inc. FB Vice-President of Product Doug Hirsch in 2011.

Price Action: GoodRx shares closed 53.03% higher at $50.50 in the regular session on Wednesday. The stock dropped about 3.9% in the after-hours session at $48.55.

Photo courtesy: GoodRx