As it prepares to go public, telehealth company Amwell priced its stock late Tuesday between $14 and $16 per share.
The company aims to sell 35 million shares of its Class A common stock, which would bring in gross proceeds of $490 million to $560 million, according to its updated S-1 filing with the Securities and Exchange Commission (SEC).
Amwell estimates the proceeds from the IPO will be approximately $488 million, or $538 million if the underwriters exercise their option to purchase additional shares of Class A common stock at $15 per share.
Amwell reported the cash will be used for working capital, to boost research and development and to expand its sales team. If approved, its shares would be listed on the New York Stock Exchange under the “AMWL” ticker.
Morgan Stanley, Goldman Sachs and Piper Sandler are acting as lead joint bookrunning managers for the offering.
Alphabet's Google Cloud is investing $100 million into the Class C shares of Amwell, an investment that will be made concurrent with the IPO. In return, Google Cloud will become the telehealth company's preferred global cloud platform partner.
There has been surging demand for telehealth during the COVID-19 pandemic, and that has boosted interest in virtual care companies.
Amwell's IPO comes after telehealth competitor Teladoc's blockbuster deal to buy Livongo for $18.5 billion.
If Amwell hits its target, it will be one of the largest IPOs for a virtual care company. In July 2019, Livongo raised $355 million in its upsized IPO while One Medical, a tech-enabled primary care company, brought in $245 million in its public offering.
Healthcare analytics company Change Healthcare raised $640 million its IPO last year, and GoHealth, a Medicare-focused health insurance marketplace, nabbed a blockbuster $914 million offering in July.
Amwell, which launched in 2006, works with 55 health plans that support over 36,000 employers and collectively represent more than 80 million covered lives, as well as 150 of the nation’s largest health systems, encompassing more than 2,000 hospitals, according to its S-1 filing.
To date, Amwell says it has powered over 5.6 million telehealth visits for its clients, including more than 2.9 million just in the first half of 2020.
The company has significant losses, but its revenue has grown rapidly during the telehealth boom amid the COVID-19 pandemic. In the first half of 2019, Amwell's revenue was $69 million, and that jumped 77% to $122 million in the first half of 2020.