Daily Management Review

"LinkedIn for Doctors" doubles its market capitalisation during IPO


Doximity, known as the contact network for healthcare professionals, pumped its market value in its first trading day on the stock exchange. The company raised about $500mln during its IPO and closed with a market capitalisation of $9.4bn.

Doximity, the U.S.-based company that has developed an app for doctors that is used by more than 1.8 million medical professionals, more than doubled its capitalization in its first trading day on the New York Stock Exchange. It raised almost $500 million in its IPO and was valued at $9.4 billion by the close of trading, CNBC reports. 

The company that describes itself as LinkedIn for doctors, sold 19mln papers at $26 apiece on the first day of trading, exceeding the forecast of $20-23, while a current investor sold some more 4.3mln papers. The shares finished at $53 a share, pushing the company to $9.4bn market cap. Doximity last raised $54m in funding in 2014, when investors valued it at $355m, according to PitchBook.

The company was opened in 2010 and has become the main app through which medical professionals connect with each other, sharing data on the newest research and medications. There are more than 1.8 million healthcare professionals on the network, including 80 per cent of doctors. 

Doximity has boosted revenues by letting pharma manufacturers to promote products to their users and by offering recruiters in the medical sphere a central stage to find potential clients. The firm's IPO prospectus shows that its revenues rose 77% last year, to $206.9m. 

source: cnbc.com