February 12, 2015 / 5:01 PM / 3 years ago

UPDATE 1-Inovalon shares rise 25 pct in debut

(Adds details)

Feb 12 (Reuters) - Shares of Inovalon Holdings Inc, a healthcare data analytics firm, jumped as much as 25 percent in their market debut, after the company priced its shares above its expected price range.

Shortly after it started trading on the Nasdaq, the stock touched a high of $33.75, valuing Inovalon at about $4.88 billion.

Helped by a strong customer base, a profitable record and growth prospects for its analytics technology, the company stood out as several others struggled to price their IPOs this week.

Inovalon raised $600 million from its IPO of 22.2 million class A shares, making it the second biggest offering this year after Columbia Pipeline Partners LP raised $1 billion last week.

The company’s shares were priced at $27 each, above the expected range of $24-$26 and up from an initial $21-$24 range due to strong demand.

Inovalon uses predictive algorithms to suggest health conditions by analyzing data stored in its registry, which contains more than 9.2 billion medical events from more than 120 million unique patients.

Its customers include some of the largest health insurers in the United States. Blue Cross Blue Shield of Michigan, EmblemHealth, HealthFirst, and WellCare Health Plans Inc each accounted for 10-12 percent of its revenue in 2013.

Chairman and Chief Executive Keith Dunleavy is the biggest shareholder with a 44.8 percent stake. He did not sell any shares in the IPO.

The company said it planned to use the proceeds from the offering for working capital.

Goldman Sachs & Co, Morgan Stanley and Citigroup were the lead underwriters of the offering. (Reporting by Sudarshan Varadhan in Bengaluru; Editing by Joyjeet Das)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below