Livongo, a California-based consumer digital health startup saw its shares surge as much as 62 percent on the Nasdaq on the first day of trading. This signifies that the healthtech or digital healthcare sector has been growing stronger and it continues to lure investors. According to reports, around $4.2 billion was poured into the digital health companies in the first half of 2019.
“It’s a signal to the market that the industry is ready for a consumer-first experience in healthcare, and to stay healthy living their best life,” Zane Burke, CEO of Livongo told the media.
He added that, “This IPO, basically we offered up less than 15 percent of the company. We weren’t talking money off the table, but this is truly about how we are preparing for the future. This is to fuel future growth.”
Less than a month ago the US startup filed for an IPO on the Nasdaq Global Select Market.
Similarly, Health Catalyst, a distributor of data and analytics technology and services to healthcare organisations made its debut on the stock market and gained as much as 56 percent.
While Livongo, which is backed by Microsoft, raised over $350 million in its offering, Utah-based Health Catalyst raised around $180 million.
Two other healthcare software company-Phreesiaand Change Healthcare also started trading earlier this month. According to media reports, DNA-testing company Ancestry and clear-aligners company SmileDirectClub are also gearing to make their debut on the stock exchange.
Founded in 2014, Livongo operates programmes to provide care for people with diabetes and other chronic diseases using glucose meter and other devices. With the help of technology, Livongo vows to manage these chronic diseases in a better way and at a lower cost.
Prior to the IPO, Livongo has raised $237 million and the company was valued at $800 billion. After the IPO, its valuation increased to $3.6 billion. It generated revenue of $30.8 million in 2017 and doubled it by generating $68.4 million in 2018.