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GoodRx jumps on IPO, +50% after pricing above range

September 23, 2020

Telehealth company GoodRX (GDRX, +48.5%) is surging on its first day of trading.

Shares opened at $46, well ahead of the IPO price of $33/share, which was ahead of the expected price range of $24-$28/share.

GoodRx raised about $772M with its offering.

Private equity investor Silver Lake owned about 35.3% of GoodRx before the offering.

“The firm is primarily an advertising revenue company that is seeking to expand into other revenue streams,” Donovan Jones wrote on Seeking Alpha. “While I suspect that GDRX will be successful over the medium term in doing so, it is still subject to the vagaries of advertising rates. The question I have is whether an advertising funded business model should command an EV/Revenue multiple of 24x.”

The stock is trading around 37x EV/revenue at current levels.

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