Teladoc IPO priced above previous range, then shares soar (updated)

Telemedicine service provider Teladoc priced its IPO Tuesday night at $19, well above the previously announced range of $15-$17, then shares soared Wednesday morning.

Telehealth company Teladoc is having a banner day with its initial public offering. The Purchase, N.Y.-based company priced its IPO Tuesday night at $19, well above the previously announced range of $15-$17, then shares soared Wednesday morning.

Bids opened at $29.90 on the New York Stock Exchange — 57 percent higher than the IPO price — and surpassed $31 within the first hour of trading. At 10:30 a.m. EDT, one hour after the market opened, Teladoc was at about $30.75.

After the initial exuberance, shares settled at $28.50, making for a 50 percent gain on Day 1.

Based on the planned offering of 7 million to 8.25 million shares, Teladoc raised as much as $156.75 million with the IPO, well above the $136.85 million maximum value from the earlier pricing estimate. At $31 a share, those 8.25 million shares would be worth $255.75 million, not a bad haul for early sellers.

Teladoc also announced Wednesday that it is now offering services in Idaho as of July 1, the effective date of a new state law that reinstates the right for physicians to see patients via two-way audiovisual connections. The company had pulled out of Idaho last year.

Photo: New York Stock Exchange