Health-care services firm Accolade with its dual headquarters in Plymouth Meeting and Seattle has topped its target price in an IPO which raised $220 million, writes Harold Brubaker for The Philadelphia Inquirer.
The company sold 10 million shares – 1.25 million more than the target – at $22 each, above the projected range of $19 to $21. On its first day of trading, the stock surged to $34.27, before closing at $29.70. That represents a 35 percent increase over the IPO price.
While Accolade lost $51 million in the last fiscal year, this price demonstrates that investors have confidence in its prospects.
The firm helps large companies navigate the health-care maze. Its top four customers include American Airlines, Comcast Cable, Lowe’s, and State Farm.
“The COVID environment, as tragic as it is, it’s really cast a spotlight on the fact that employers struggle with the complexity of the health system in terms of expense,” said Accolade’s chief financial officer, Steve Barnes. The pandemic “has illuminated the need for our services.”
The company currently employs 500 in Plymouth Meeting and 200 in Seattle. It also has offices in Arizona, California, and the Czech Republic.
Read more about Accolade at The Philadelphia Inquirer by clicking here.
Yesterday’s Top Stories