Hinge Health prices IPO at $32, the top end of expected range

Hinge Health priced its IPO at $32 per share on Wednesday, at the top end of the expected range.

The digital physical therapy startup sold 8.52 million shares in the offering, raising about $273 million. The total offering was for 13.7 million shares, with the balance being sold by existing shareholders.

Hinge, founded in 2014, will trade on the New York Stock Exchange under the ticker symbol "HNGE." The company filed its initial prospectus in March and updated the document earlier this month with an expected pricing range of $28 to $32.

At the IPO price, Hinge Health is worth about $2.6 billion, though that number could be higher on a fully diluted basis. That's down significantly from a private market valuation of $6.2 billion in October 2021, the last time the company raised outside funding.

The company uses software to help patients treat acute musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation remotely. It was co-founded by CEO Daniel Perez and Executive Chairman Gabriel Mecklenburg, who have both experienced personal struggles with physical rehabilitation.

Revenue in the first quarter increased 50% to $123.8 million from $82.7 million a year ago. Hinge reported net income for the period of $17.1 million, swinging from a net loss of $26.5 million in the same period last year.

Hinge's IPO will be closely watched by the digital health sector, which has been mostly devoid of public offerings since 2021. Digital health has been a particularly tough market over the last few years as companies have struggled to recover from a post-Covid slowdown.

Tech IPOs broadly have been few and far between of late. But there are signs that activity is picking up. Shares of stock brokerage platform eToro popped in their market debut last Wednesday, and artificial intelligence infrastructure provider CoreWeave reported 420% revenue growth, topping estimates and sparking a 56% rally in the stock last week.

Hinge has raised more than $1 billion from investors including Tiger Global Management and Coatue Management.

"We have many decades of work ahead," Perez wrote in a letter to investors in March. "We hope you join us on this journey."

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