shares surge in market debut

Doug Hirsch, Co-Founder and C0-CEO of GoodRx.

Heidi Petty | CNBC

Shares of GoodRx, a company that finds users prescription drugs at a discount, jumped 40% in its public debut Wednesday on the Nasdaq. 

The stock began trading at $46 per share, up from its IPO price of $33 per share, boosting its market cap to about $17.6 billion. Shares were up as much as 50% early Wednesday afternoon, trading under the symbol “GDRX” on the NASDAQ.

Founded in 2011 by Facebook veteran Doug Hirsch and software entrepreneur Trevor Bezdek, GoodRx offers users a free list of discount cards and coupons to cut down costs of their prescription medication. The company collects fees from the pharmacy benefits managers it works with.

It’s the latest tech company to go public in a busy month for IPOs, following Snowflake, Unity and Amwell. Data analytics company Palantir is expected to go public in a direct listing on Sept. 30. GoodRx revealed in its filing to go public last month that it has been consistently profitable since 2016, a rare feat for tech start-ups going public. 

The company said it earned $55 million in profit for first half of 2020, up from $31 million in the first half of 2019. Revenues for the first half of 2020 were $257 million, up from $173 million in the first half of 2019. In 2019, it pulled in $66 million in profit on $388 million in revenue. 

Morgan Stanley, Goldman Sachs and JP Morgan led the IPO, while investors include Silver Lake, Francisco Partners and Spectrum Equity, according to the company’s S-1/A. 

GoodRx ranked No. 20 on this year’s CNBC Disruptor 50 list.

Subscribe to CNBC on YouTube.

Correction: This story has been updated with the correct market cap for GoodRX when its shares started trading.

Source link




Dropbox to cut 11% of its global workforce

Dropbox Inc. co-founder Drew Houston waits as Dropbox (DBX) is listed for the company's initial public offering (IPO) at the Nasdaq Market Site...

U.S. ‘flying blindly’ when it comes to new Covid variant, says doctor

Dr. Ashish Jha, the Dean of Brown University's School of Public Health, warned "The News with Shepard Smith" that the United States is...

Positive Coronavirus Tests Shut Down Two NFL Teams

Sept. 30, 2020 -- The Tennessee Titans and Minnesota...

Clubhouse hires Android developer, work on Android app has begun

Paul Davison, CEO of Clubhouse.David Paul Morris | Bloomberg | Getty ImagesClubhouse, the rapidly growing social media audio app, has hired an Android...