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GoodRx Files for $900M IPO, Gets $100M from Silver Lake and Acquires Scriptcycle

UTC by Steve Muchoki · 3 min read
GoodRx Files for $900M IPO, Gets $100M from Silver Lake and Acquires Scriptcycle
Photo: Unsplash

GoodRx is going public. The IPO price of its Class A common stock is expected to be between $24.00 and $28.00 per share.

GoodRx Holdings Inc, a company that collects drug prices from pharmacies across the United States and helps its users find the cheapest option for the medication, has filed for an initial public offering (IPO). The announcement is coupled with other important fundamental news.

“We are selling 23,422,727 shares of our Class A common stock and the selling stockholders named in this prospectus are selling 11,192,657 shares of our Class A common stock,” the company wrote in the prospectus.

Being at a time when technology is helping in circumnavigating most of the challenges brought about by the ongoing coronavirus pandemic, most tech companies are finding it hard to resist any chance of expanding their business venture through IPOs.

With an almost billion-dollar possible business opportunity according to the company, it is anticipating to net more investors especially during the pandemic.

The initial public offering price of its Class A common stock is expected to be between $24.00 and $28.00 per share. According to the fillings with the SEC, the company expects to go live through the Nasdaq Global Select Market under the symbol “GDRX.”

In addition, the company anticipates selling Class B common stock with almost similar rights except to voting and conversion-related rights.

Each share of Class A common stock is entitled to one vote, whereas each share of Class B common stock is entitled to 10 votes and is convertible into one share of Class A common stock.

GoodRx before IPO

Being an emerging and fast-growing company, it has already attracted different investors even prior to the IPO. “Silver Lake has agreed to purchase, subject to customary closing conditions, $100.0 million of our Class A common stock in a private placement at a purchase price per share equal to the initial public offering price per share,” the company stated in the report.

As more investors come on board, the company has stipulated the expected code of operation especially in regards to rights to decision making.

“We intend to enter into a new stockholders agreement, with Silver Lake, Francisco Partners, Spectrum and Idea Men, LLC, granting each party certain board designation rights for so long as they beneficially own at least 5% of the aggregate number of shares of common stock outstanding immediately following this offering and the private placement,” GoodRx stated.

Surprisingly, the company has given its co-founders a bigger than usual stake of the company. The two co-founders, Douglas Hirsch and Trevor Bezdek, are set to receive approximately 25 million shares of stock, at what the company placed as a fair-market value of $533.3 million.

In the report, the company has noted that it acquired Scriptcycle, a prescription management service for retail chains, for $60.1 million back on August 31.

Other business news can be found here.

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