Health Analytics Firm Raises $600m in IPO

Feb. 13, 2015
Inovalon, a Bowie, Md.-based clinical analytics firm, raised $600 million this week in its initial public offering (IPO) after pricing its 22.2 million class A shares at $27 per share.

Inovalon, a Bowie, Md.-based clinical analytics firm, raised $600 million this week in its initial public offering (IPO) after pricing its 22.2 million class A shares at $27 per share.

The company priced its stock above the expected range of $24-to-$26 per share. Because of this, the stock traded at more than $33 per share, 25 percent over its offering price. However, it went back to down to earth and finished the day back at $27 per share. It’s currently sitting at $28 per share.

The company offers cloud-based data analytics to health plans, physicians and ACOs, patients, and researchers. According to Reuters, most of its revenue comes from payers.

It’s another glitzy IPO for the healthcare IT industry. In 2014, six companies in health IT had IPOs and raised billions. The most prominent were Premier, with its $760 million IPO, Castlight, with an IPO valued at $1 billion, and IMS Health, a Danbury, Conn.-based analytics company raised $1.3 billion. Castlight and IMS were among the biggest IPOs in 2014. Inovalon is thus far the second biggest IPO in 2015.

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