Dive Brief:
- Evolent Health, a software and health consulting company co-founded in 2011 by UPMC Health Plan and The Advisory Board Committee, saw its stock reached $18.86 per share on its first day of trading—for a total of $195.5 million.
- The company expected its initial offering to be between $14 to $16 per share.
- If the underwriters purchase 1.75 million shares at the offering price of $17 per share, proceeds from the IPO could top $225 million.
Dive Insight:
Evolent helps providers transition towards providing value-based care by facilitating things like electronic health-record optimization and risk stratification. Ranked by Forbes as number 12 in its "America's Most Promising Companies" list, the company joins a few other healthcare IT firms that are trying to cash in on the sector's current cachet on Wall Street. Teladoc filed in April and analysts were largely positive on the decision:
"I think it's a solid business with strong leadership and supported by market tailwinds," McKesson's Tom Rodgers told Modern Healthcare. "Smart move to get out now, and I would expect a warm reception from Wall Street."
Given the success of Evolent's launch, expect more health IT companies making the same decision.