On September 7, 2021 – Definitive Healthcare Corp, the Massachusetts-based provider of health care commercial intelligence revealed terms of its initial public offering IPO aiming to raise up to $373.3M.
- Detailed instructions how to participate in Definitive Healthcare (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Goldman Sachs/J.P. Morgan/Morgan Stanley/Barclays/Credit Suisse/Deutsche Bank Securities in Definitive Healthcare case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Definitive Healthcare IPO
Definitive Healthcare is a leading provider of healthcare facility information. The company has data on 8,000 US hospitals (plus 750 Canadian), 7,250 ambulatory surgery centres, 15,000 skilled nursing facilities and one million doctors.
Definitive Healthcare provides its commercial clients with analytics that help them optimise product development, properly plan market entry and correctly realise marketing and sales. The company has over 2,600 active customers, including Siemens, Amazon, GE Healthcare, and TherapeuticsMD.
The healthcare analytics market is actively growing. According to Markets and Markets, it could grow from $21.1 billion in 2021 to $75.1 billion in 2026, at a compound annual growth rate of 28.9%. The growth of the market will also be a growth driver for Definitive Healthcare, bringing the company to cover a leading position in the market.
Market Cap $3325.28mil
Revenues $140.0 mil (last 12 months)
Net Income $-51.4 mil (last 12 months)
625 employees
How to Buy Definitive Healthcare Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Definitive Healthcare IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Definitive Healthcare shares when the company goes public via a commission-free trading app like eToro or Webull.
🚨 Detailed Instructions How to Participate in the Definitive Healthcare IPO before public trading:
Below we share the instruction how to participate in the approaching Definitive Healthcare IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Definitive Healthcare is already listed there.
🎁 A special offer is available for this IPO.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Definitive Healthcare and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Definitive Healthcare IPO date?
Definitive Healthcare's IPO date is on September 14, 2021.
What is Definitive Healthcare IPO price range?
Definitive Healthcare IPO price range is $21 to $24 per share.
How to Invest in Definitive Healthcare after the IPO date (opening price)?
After the IPO you can buy Definitive Healthcare stocks via Freedom24. Or if you're from the US use a commission-free trading app like eToro on the first trading day.
In what currency Definitive Healthcare IPO and post-IPO shares will be traded?
The Definitive Healthcare IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Definitive Healthcare (stock symbol)
The stock ticker for Definitive Healthcare will be DH
Definitive Healthcare Prospectus
Definitive Healthcare Registration Statement on Form S-1
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