Telehealth Giant Amwell Sets Initial Public Offering at $560 Million
American Well Corporation is gearing up to go public, telehealth provider Amwell has released terms of its upcoming IPO in a regulatory document filed late Tuesday. The firm aims to offer 35 million shares of its Class A common stock for sale at a price between $14 and $16 per share as the coronavirus pandemic increases the demand for virtual healthcare offerings.
Based on the information contained in the document, Amwell expects to raise about $560 million. The company aims to use the proceeds "for working capital and other general corporate purposes," which could cover several uses. The company expressly listed improving research and development and expanding its sales team, alongside other purposes.
The company also announced it has applied to list its shares” on the New York Stock Exchange under the ticker “AMWL.
The Boston-based company delivers telemedicine services through its proprietary Amwell Platform. With this, it states, as of the end of June, it had made available the digital health programs of 55 insurance plans, which in turn covered over 36,000 businesses employing more than 80 million people. The Amwell Platform was also in use at 150 of the top health systems in the U.S.; this includes over 2,000 hospitals.
The company has had more than 5.6 million virtual visits by patients since it launched the platform. In 2019, the company raked in $148.86 million in revenue, a 30.6% increase from 2018. It reported a net loss of $88.4 million, compared to a $52.3 million net loss in 2018.
Though the firm is yet to record profits, the future looks bright. Just last month, Alphabet Google Cloud unit announced its plan to invest $100 million into Amwell's Class C shares. Alphabet's investment is expected to come concurrently with the IPO. In return, Google Cloud will become the "preferred global cloud platform partner" of the company. The partnership will help develop cutting-edge technologies in the telehealth sector.