Doximity and Investor Exceed IPO Goal to Raise $606 Million


Health-care platform Doximity Inc. with an investor raised $606 million after pricing an initial public offering above the marketed range, according to a company statement.

The profitable San Francisco-based company sold 23.3 million shares for $26 each Wednesday after marketing them for $20 to $23, according to a statement. The company is valued in the listing at $4.6 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

Accounting for employee stock options, the company has a diluted valuation of more than $5.5 billion.

More than 80% of U.S. doctors use Doximity’s platform designed for medical professionals, the company said in its filings. Its platform includes video calling for telemedicine as well as secure messaging and a directory of clinicians. Doximity also provides a news feed with medical stories.

The company’s top shareholders are co-founder and Chief Executive Officer Jeff Tangney and affiliates of Emergence Capital Partners, InterWest Partners and Morgenthaler Venture Partners, according to its filings. InterWest is selling about 4.3 million Class A shares in the IPO.

Doximity reported $50 million in net income on $207 million in revenue for the year ended March 31. The business had almost $30 million in net income on $116 million in revenue for the same period the year before.

The offering is being led by Morgan Stanley, Goldman Sachs Group Inc., and JPMorgan Chase & Co. Its shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol DOCS.

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