Shares of Accolade (ACCD) jumped in their first day of trading as the Seattle health benefits company went public at a price above its estimate.
The offering of 10 million shares was set at $22, above its estimated range of $19 to $21. At last check the stock was up 39% to $30.58. It has traded on Thursday at as much as $36.89 a share.
Goldman Sachs, Morgan Stanley and Bank of America are joint book-running managers for the offering. Piper Sandler, Credit Suisse and William Blair also are book-running managers.
The underwriters have a 30-day option on an additional 1.5 million shares at the offering price.
Accolade, which was founded in 2007, operates a digital portal that enables employees to navigate the benefits provided by its client companies.
It provides users with a "front-line health assistant who understands their benefits and healthcare ecosystem."
That's important, Chief Executive Raj Singh says in the company's S-1 prospectus, because "healthcare in the United States is broken. Let's not sugarcoat that fact.
"We live in a country that spends the most per capita on healthcare by a wide margin, with the best trained clinicians and state-of-the-art facilities, yet our outcomes lag."
Also today, the insurtech Lemonade surged in its Wall Street debut. The company sold 11 million shares at $29 each, above its $26 to $28 estimated range.
And the IPO market has been hot in recent weeks with debuts from online car market place Vroom (VRM) - Get VROOM INC. Report and business information provider Dun & Bradstreet both rising sharply in their debuts.