Worker advantages software program firm Accolade will search as much as $211 million in its market debut, in line with paperwork filed with the Securities and Alternate Fee on Wednesday.
The startup had filed preliminary paperwork indicating its plans for an IPO in March. Now, it has shared the phrases: It is going to provide simply over 10 million shares priced between $19 and $21.
Accolade, which splits its headquarters between Seattle and Philadelphia, supplies customers details about their accessible advantages and may also help them decide essentially the most cost-effective suppliers of their community. The corporate has a complete of 58 clients, which it expenses on a per-member per-month foundation.
A few of its greatest clients embody American Airways, Comcast Cable, Lowe’s and State Farm. However these 4 corporations additionally make up a good portion of its enterprise, accounting for greater than 56% of its income, with Comcast alone accounting for 24%. (Comcast can also be an investor within the firm).
Accolade plans to make use of the funds from the IPO for basic functions and for the reimbursement of debt. The latter has elevated, partially because of the Covid-19 pandemic and ensuing downturn. In February, Accolade had an impressive debt of $22 million, however that quantity elevated to $73.2 million as of May 31.
Although the corporate expects its income to extend this yr resulting from a number of new buyer launches, it has been working at a web loss in recent times. As of February, the corporate reported $132.5 million in income and a web lack of $51.36 from the previous yr. Throughout the identical interval final in 2019, it reported $94.81 million in income and a web lack of $56.5 million.
Although it occurred throughout very completely different market situations, competitor Castlight Well being’s IPO may nonetheless be recent in some traders’ minds. The corporate, which went public in 2014, additionally presents worker profit navigation and care steering. At debut, the startup’s stock soared 149% to just about $40 per share, giving it a valuation of over $three billion, regardless of having no income and solely $13 million in income.
Accolade declined to touch upon its plans. Eight banks will underwrite Accolade’s IPO, with Goldman Sachs, Morgan Stanley and Bank of America Securities main the deal. The corporate shall be listed on Nasdaq as ACCD.
Photograph credit score: aurielaki, Getty Photos