Private equity-backed One Medial launches IPO

San Francisco-based One Medical, a membership primary care company, has launched its initial public offering with a starting share price of $14. The company expected to gain gross proceeds of $245 million.

One Medical signaled in early January it was filing for an IPO. The company is backed by several high-profile private equity groups, including The Carlyle Group, GV (formerly Google Ventures) and J.P. Morgan. Its rise to an IPO underscores the booming private equity interest in the healthcare space. While the company has been touted as innovative and representing the future of healthcare, the company has yet to turn a profit, reporting a net loss of $34.2 million for the first nine months of 2019.

One Medical is a primary care company that is based on a membership model. Members pay $199 annually for access to primary care physicians and same-day appointments at its 77 physical offices in nine major U.S. cities. Patients also have access to virtual care at any time. The company launched in 2007 and has nearly 400,000 members in its ranks.

The company is trading on the Nasdaq under the moniker ONEM. 1Life Healthcare is the administrative and managerial services company for affiliated One Medical physician owned professional corporations, and both entities do business under the One Medical name, according to a press release.