In the run-up to its public offering anticipated this Friday, Castlight Health raised its share price to the $13 to $15 range. The amended registration means it will seek to raise up to $191.5 million with the IPO, which includes fees for underwriters. The increase reflects a boost in confidence for the digital health company, which works with employer plans toward increasing price transparency in healthcare.
Castlight Health’s initial share price range was $9 to $11.
The digital health company, which is expected to go public this Friday, has attracted a lot of attention because it’s seen as a bellwether for another potential digital health IPO this year from companies such as ZocDoc. It could also spur even more investment in the sector, which attracted about $1.97 billion in investment in 2013, according to data from Rock Health.
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There has been some concern that the revenues for digital health companies won’t be enough to justify the level of investment and questions as to whether price transparency is a workable business model as state and federal governments and other companies increase transparency themselves.
