Augmedix, which provides remote documentation software to the healthcare industry, announced terms for its IPO on Monday.
The San Francisco, CA-based company plans to raise $40 million by offering 6.7 million shares at $6, the October 1 close of its shares on the OTCQX (AUGX). Existing shareholders Redmile Group, DCM, and McKesson Ventures and new investor LifeSci Venture Partners intend to purchase $8 million worth of shares in the offering (20% of the deal). At the proposed price, Augmedix would command a fully diluted market value of $241 million.
Augmedix launched its commercial real-time, remote documentation services in 2014. The company focuses most of its efforts in the ambulatory/clinical segment of the patient care market. Roughly 85% of the physicians who subscribe to its service are employed directly by or are affiliated with a healthcare enterprise, and the remaining 15% consists of small practices and individual practitioners. Augmedix has generated in excess of five million medical notes since it began offering its service and are currently delivering over 35,000 notes to its customers each week. To date, the company provides service to four of the top 10 and six of the top 20 US healthcare enterprises.
Augmedix was founded in 2013 and booked $19 million in revenue for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol AUGX. William Blair and B. Riley Securities are the joint bookrunners on the deal.
