The primary-care company One Medical surged in its stock-market debut on Friday.
On Thursday, One Medical priced its shares at $14 apiece, the low end of its expected range of $14 to $16 a share. The stock started trading at $18 a share on Friday morning, closing 58% higher at $22.07.
One Medical was founded by Tom Lee, who served as the company’s CEO until 2017. CEO Amir Rubin joined One Medical in 2017 after working as an executive at UnitedHealth Group’s Optum division. Before that, he was the CEO of Stanford Health Care.
Lee, for his part, founded a new healthcare startup called Galileo, which offers a mix of online and in-person care. The goal is to do a better job of taking care of sicker people in the government-funded healthcare programs Medicare and Medicaid.
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When One Medical opened for business in San Francisco in 2007, its goal was to upend the way people got medical care by making it easy and convenient to see a doctor. The company charges a $200 annual fee and bills your insurance. One Medical had 397,000 members and operated in 77 locations as of September 30, according to its S-1 filing.
The company’s net losses deepened as membership climbed, the filing said. From 2017 to 2018, losses widened from $31.7 million to $44.4 million. For the first nine months of 2019, One Medical’s net loss was $34.2 million.
“We believe we can grow responsibly and continue to grow” in a massive marketplace, Rubin told Business Insider on Friday. “But also deliver good returns.”
One Medical’s top investors going into the IPO included The Carlyle Group (which owns 26.8%), Benchmark Capital (which owns 13%), Oak Investment Partners, Lee, DAG Ventures, GV, JPMorgan, and Maverick Fund.