- The prescription-discount startup GoodRx is expected to go public Wednesday at $33 per share, Axios and Reuters reported Tuesday.
- In its initial S-1 filing, GoodRx disclosed that it has a dual-class stock structure that gives voting rights to some stockholders and not others.
- However, the classes of stock will be worth about the same dollar amount upon the startup’s public debut.
- Here are the investors that stand to make the most money once GoodRx goes public.
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GoodRx, the prescription-discount startup that recently started dabbling in digital health, is expected to go public on Wednesday.
According to reports by Axios and Reuters, the startup priced shares at $33 on Tuesday ahead of Wednesday’s expected debut, a price that’s well above the $24 to $28 set range in an amended filing. Tuesday’s set price would give GoodRx a market cap of around $12.7 billion. It will trade on the Nasdaq under the ticker GDRX.
The debut will provide a windfall to investors and executives that have a significant stake in the company.
Founded in 2011, GoodRx got its start as a place patients went to find coupons to make their prescriptions cheaper. It’s since expanded to offer telemedicine services as well.
It’s the latest healthcare startup with an eye toward the public markets.
On August 24, the digital-health startup Amwell filed to go public with a $100 million investment from Google, and the primary-care startups One Medical and Oak Street Health both had strong IPOs earlier this year. GoodRx is an outlier among its peers in that it has been profitable since at least 2016, according to the filing.
In the filing, GoodRx revealed that it has a dual-class stock structure, which is common with many startups in Silicon Valley. Though all shares are worth roughly the same dollar amount, Class B shares retain voting rights, while Class A shares do not.
Most of the investors and significant stakeholders have Class B shares, meaning they have more control over the long-term governance of the company even after its public debut.
GoodRx counts a number of private-equity firms and some of its early employees as top shareholders in the company.
In its filing, GoodRx listed the top shareholders in the company and their stakes:
- Silver Lake, a private-equity firm, owns 37.2% of GoodRx Class B shares, or just over 126 million shares, going into the IPO. Those shares were worth just under $4.2 billion on Tuesday.
- Francisco Partners, another private-equity firm, owns 25% of GoodRx Class B shares, or 84.7 million shares, going into the IPO. Those shares were worth about $2.8 billion on Tuesday.
- Spectrum Equity, a private-equity firm, owns 16.2% of GoodRx Class B shares, or roughly 54.9 million shares, going into the IPO worth $1.8 billion on Tuesday.
- Doug Hirsch, 49, and Trevor Bezdek, 42, are the cofounders and co-CEOs of GoodRx. They each own 1.3% of GoodRx Class B shares, or 4.5 million shares apiece worth $148.5 million, going into the IPO.
- Idea Men, a holding company set up by Hirsch and Bezdek, owns 18.9% of GoodRx Class B shares, or roughly 63.9 million shares worth $2.1 billion, going into the IPO.
- Andrew Slutsky, an early GoodRx employee, owns 3.9 million Class A shares worth $130 million. Slutsky, 34, serves as the president of GoodRx’s consumer business, according to the filing.
- Sivakami Sambasivam, GoodRx’s senior vice president of marketing and founding team member, owns 2.2 million Class A shares worth just over $73 million on Tuesday.
- TTCP Executive Fund – GRX, a subsidiary of the investment bank TripleTree Holdings, owns about 1.7 million Class A shares worth just under $60 million on Tuesday.
- William McClure, an early GoodRx employee, owns roughly 1.2 million Class A shares, which were worth just under $39 million on Tuesday.