Shares’ prices of the Santa Monica, CA-headquartered American healthcare company GoodRx skyrocketed as much as 40 per cent in their Nasdaq debut on Wednesday, while the online prescription drug platform that keeps track of 75,000 pharmacies across the United States had raised $1.14 billion a day earlier at its initial public offering.
More importantly, in what could be viewed as a robust appetite for new stocks in the US money markets amid a cachexic IPO season this year, shares’ prices of the private equity-backed GoodRx Holding Inc. had opened the day at $46 per share, more than 30 per cent higher of its initial offering of $33 per share which had also been above the healthcare company’s target range, while the at the market opening price, GoodRx had been valued at $18 billion, nearly six folds of the market cap that the firm had pegged during its latest fundraising campaign back in the 2018s.
Nonetheless, followed by an explicable profit-taking wave at the late-afternoon session, Nasdaq-listed shares’ prices of the American provider of discount coupons for drugs alongside a telemedicine platform and a free-to-use website and mobile app that could trace and compare prescription drug prices across the United States, had rounded off the day 53.03 per cent higher to $50.50 apiece.
GoodRx Nasdaq debut vindicates a strong demand for US IPOs
More importantly, Wednesday’s Nasdaq debut of the California-based healthcare company GoodRx comes over the heels of a couple of successful US IPOs last week such as the data warehouse company Snowflake Inc.
alongside the gamemaker Unity Software Inc., highlighting investors’ appetite for new stocks while a near-zero interest rate had been forcing a number of equity funds to seek profit into the IPOs. Nonetheless, followed by its blockbuster Nasdaq Debut, the GoodRx Co-Chief Executive and co-founder Doug Hirsch said earlier on the day, “By the time (the car) arrives, there will be significant competition in the segment, from VW group, amongst others. ” GoodRx makes money by charging commissions on the sales of its partnering pharmacies.