Omada Health (OMDA) to Hold IPO at $1.1 Billion Valuation

Chronic care company Omada Health is planning to hold an initial public offering (IPO) in New York, and is aiming for a market capitalization of $1.1 billion.

The company, which specializes in virtual patient care, said it plans to sell shares in a price range of $18 to $20 in hopes of raising $158 million from the share sale. Omada Health said it will sell 7.9 million shares in the IPO that is expected to take place during the first week of June.

Omada Health is focused on treating and supporting people who have chronic conditions such as prediabetes, diabetes, and hypertension. It will be the second digital health company to hold an IPO in recent weeks after physical therapy start-up Hinge Health (HNGE) debuted on the New York Stock Exchange earlier in May.

Omada Health will trade on the Nasdaq Composite (NDAQ) exchange under the ticker symbol “OMDA.”

Between Visits

Omada Health, which is based in San Francisco, California, describes its approach as a “between-visit care model” that is complementary to standard healthcare treatments and consultations. The company was founded in 2012.

Omada Health’s revenue increased 57% in this year’s first quarter to $55 million from $35 million a year earlier, according to its IPO prospectus. In 2024, revenue rose 38% to $169.8 million from $122.8 million the previous year. The company’s net loss narrowed to $9.4 million in this year’s first quarter from $19 million a year earlier.

Morgan Stanley (MS), Goldman Sachs (GS), and JPMorgan Chase (JPM) are the lead underwriters on the IPO for Omada Health.

Is OMDA Stock a Buy?

It’s too early for analysts to have ratings and price targets on Omada Health or Hinge Health. So instead we’ll look at rival telemedicine company Teladoc Health (TDOC). TDOC stock has a consensus Hold rating among 18 Wall Street analysts. That rating is based on three Buy and 15 Hold ratings issued in the last 12 months. The average TDOC price target of $8.77 implies 25.82% upside from current levels.

Read more analyst ratings on TDOC stock