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By Ishika Dangayach, 3:42 pm ET
Doximity, a health tech company, plans to go public, through an Initial Public Offering (IPO).
On Friday, the business filed its plans for an IPO with the Securities and Exchange Commission, to raise $100 million.
The company prepares to list under the ticker DOCS but did not decide on an exchange. Moreover, the price terms are not yet disclosed.
The health-tech company announced that it would reserve up to 15% of its shares in the offering for doctors under a reserved share program.
That means qualifying doctors can buy the stock at the same price as a select group of institutional investors, who frequently gain from the IPO boom because they receive an early allocation and don't have to wait for trading to start.
“We aspire to be the world’s largest physician-owned technology company, and our IPO reserved share program is intended to both thank our members and kickstart the process,” co-founders Jeff Tangney, Nate Gross, and Shari Buck wrote in the founders’ letter portion of the prospectus, CNBC reported.
The company, situated in San Francisco, CA, was launched in 2010 and offers a digital platform for US medical practitioners, including telemedicine and scheduling capabilities. As of March 31, 2021, the firm has over 1.8 million medical professional members, which included more than 80% of physicians from all 50 states and every medical specialty.
Doximity is a physician-focused online platform that enables them to connect with colleagues, securely coordinate patient care, perform virtual patient visits, read the latest medical news and research, and manage their careers.
Last year's revenue increased by 78 percent to $206.9 million. Sales and marketing accounted for 30% of total sales. The company is profitable, with net income of $30 million and $50 million in 2019 and 2020, respectively.
The firm expanded into telemedicine last year with the launch of Doximity Dialer Video, a telehealth app that allows doctors to video contact their patients from any smartphone.
The deal's joint bookrunners are Morgan Stanley, Goldman Sachs, J.P. Morgan, Piper Sandler, William Blair, Canaccord Genuity, Needham & Co., Raymond James, and SVB Leerink.