(Reuters) -Doximity Inc, a social network for doctors, said on Wednesday it had raised nearly $606 million in its initial public offering (IPO) in the United States, giving it a valuation of about $4.6 billion.
The company sold 23.3 million shares at $26 each. It had indicated it would sell shares between $20 and $23 apiece.
About $111.5 million from the IPO proceeds would go to a selling stockholder, the company said.
Healthcare-focused technology companies including Doximity have benefited from pandemic-led tailwinds and have found favor with investors.
Demand for and investment in telehealth services is expected to keep rising post-pandemic, a March survey from McKinsey showed.
Founded in 2010, Doximity offers a cloud-based digital platform for medical professionals and free membership to physicians. It had more than 1.8 million members on its platform as of March 31, according to the IPO prospectus.
In response to the COVID-19 pandemic, Doximity accelerated the rollout of Dialer Enterprise, a feature that helps medical professionals conduct virtual patient visits, it said in the filing.
Morgan Stanley, Goldman Sachs and J.P. Morgan Securities were the lead underwriters for the IPO.