Unicorn fever as One Medical IPO rises by 40% after cautious prices

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<pre><pre>Unicorn fever as One Medical IPO rises by 40% after cautious prices

Shares of one Medical is valued at $ 19.50 this morning after the unicorn, backed by a venture partner, set its IPO last night at $ 14 a share. The company opened at $ 18 before rising further, according to Yahoo Finance data. At the current price, One Medical is worth around 40% more than the IPO, a strong debut for the company.

The result is a blessing for One Medical, which raised $ 532.1 million during its time as a private company. The company was valued at $ 1.71 billion ($ 14 per share). At 7:50 p.m. One Medical is valued at $ 2.38 billion, a profit for a company that, as a privately held company, is valued at around $ 1.5 billion.

For investors The Carlyle Group, J.P. Morgan, Redmile Group, GV and Benchmark (among others) made the debut a success as they again rated their stake in the company higher. For other unicorns, the news is even better. One Medical, a company with a gross margin below the 50% mark, recurring sales of far less than a minority, and sales growth of 30% in 2019 best is now worth about 8.5 times its lagging earnings.

This is about as good a signal as you can imagine for venture backed companies that are not in as good a condition as Slack or Zoom to let them know that it is now time to go public.

Unicorn directions

There are several ways to read One Medical's new earnings. They can be positive and say that the valuation and the resulting indicators are a sign of investor optimism for the medical services company. Or, you could go negative and assume that pricing looks like the market is more excited about a brand than a set of accounting results.