Yesterday, Doximity (DOCS) went public on the NYSE exchange where DOCS shares more than doubled in its first trading day. The company operates an online platform much like LinkedIn for medical professionals. It’s cloud-based software has the ability to enable the users to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers.
Doximity CEO Jeff Tangney tells us that the company has not spent any of the $54 million it raised seven years ago in a Series C round from investors Draper Fisher Jurvetson, T. Rowe Price and Morgan Stanley. “As it turned out, our business did better than we projected at the time and we never touched it,” he said.
As part of its IPO, Doximity is also allocating 15% of its stock for a “reserved share program” for medical professionals in the network to get stock at the same price as institutional investors. Doctors participating could have bought as much as $91 million if they maxed out their participation. Tangney said over 10,000 doctors participated in the program are now the largest new shareholders in Doximity.
The company’s stock closed trading at $53.89 per share — a 107% jump from its $26 IPO price. At the closing price, Doximity is valued at $9.6 billion, based on the number of outstanding shares listed in its SEC filing.