American Well’s stock gets a healthy bump out of the gate, as the first trade is 42% above the IPO price

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American Well Corp.’s stock kicked off its public life with a rally, as the first trade was 41.7% above the upsized initial offering’s price of $18 share. The first trade on the NYSE was at $25.51 at 12:54 p.m. Eastern for 5.6 million shares. The pricing late Wednesday was above the expected range of $14 to $16 share, while the 41.22 million shares sold was above previous plans for a 35 million share offering. The stock has eased slightly since it opened to be up 36.4%. The Boston-based telemedicine company raised $742 million and was valued at nearly $4 billion at the IPO price. The company went public at a time of strong demand for IPOs, as witnessed by Snowflake Inc.’s stock closing Wednesday at more than double the IPO price. The Renaissance IPO ETF has rallied 20.9% over the past three months, while the S&P 500 has gained 7.3%.
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