Initial public offerings or IPOs are known as a great way for investors to make a big profit in a relatively short time. Of course, not all companies and not all IPOs are made equal, but on average, they can bring investors 40% returns in the first 3 months. Furthermore, if they believe in the company’s long-term success then the sky’s the limit. Successful companies can bring tens of thousands of percent of profit to early investors.
Once the initial funding stages are out of the way, IPOs can be a great way for companies to gain exposure to the open market, help the company grow by attracting more capital and improve liquidity. Going public also gives early investors the opportunity to trade shares and easily cash in on their investment.
In this series we’re looking at past and upcoming IPOs, which should give you some ideas for what to invest in. If you’re a Hims customer, you might be wondering “is Hims publicly traded?” or “when is Hims going public?” as you might be interested in investing in the company. Read on to find out about Hims IPO date and all the important details about Hims IPO 2021.
Hims & Hers Health, Inc. is a company focused on telehealth, mental health, online sales of prescription and over-the-counter drugs and personal care products. Telehealth means the service connects patients with licensed healthcare professionals via video or audio call or messages. The company is best known for selling erectile dysfunction and hair loss treatments.
Hims was founded in 2017 by Andrew Dudum and Hilary Coles in San Francisco. Their first products were sildenafil, an erectile dysfunction treatment, and several hair loss treatments: minoxidil, biotin vitamins and specialty shampoo.
In 2018, Hims launched their women's department, Hers, which started selling birth control pills and other products.
In January 2019, Hims raised $100 in a Series C round and had a pre-money valuation of $1 billion, i.e. an approximate company valuation prior to large-scale investment. At this time the company launched in the United Kingdom. In April 2020, Hims added mental health services and anonymous group therapy to their list of offerings. In the same year Hims released COVID-19 self test kits and added services in Spanish.
In October 2020, the company reached a $1.6 billion valuation after making a deal to go public via a reverse merger with Oaktree Acquisition Corp., a black-check company under Oaktree Capital Management, an LA-based asset management firm. A reverse merger is when a private company becomes public by acquiring control of a public company. In this case the Oaktree subsidiary acted as a special purpose acquisition company (SPAC).
Dudum has said Hims had been considering a traditional IPO at some point, but eventually decided to go down the SPAC route after being approached by Howard Marks, the founder of Oaktree. Hims were sold on doing it via the SPAC route, which has become more popular with companies wishing to go public in recent years.
SPACs make the process faster, more cost-effective and the IPO price more predictable, although it has a few disadvantages as well. There is a possibility of share dilution and of initial investors redeeming their shares from the original company, thus resulting in loss of capital.
At this time Hims was renamed Hims & Hers Health Inc. In January 2021, shortly after the transaction was completed, Hims started trading publicly on the NYSE with the ticker HIMS.
Read on if you wish to find out about Hims IPO date and price, as well as other key info.
Hims Public Listing Key Data and IPO Date
Hims IPO Date: January 19, 2021
Reference share price: $10
First sale price: $18.17
Valuation at IPO: $1.6 billion
CEO: Andrew Dudum
Listing method: SPAC
The Hims stock IPO date was on January 19, 2021. The agreed on reference stock price was $10, which was the share price of the Oaktree Capital Corp. SPAC, which had already been listed on the NYSE with the ticker OAC since 2019. The original plan was to have their IPO date in late 2020, but this date was pushed back, which is not uncommon for companies going public. This is why some trading activity started happening in the build-up to the IPO process, starting from late November 2020.
It’s clear that investors and traders were hoping to benefit from the Hims IPO price at the time of their launch. Therefore, the first sale on the IPO day was for $18.17, but it subsequently went down almost 7%, closing at $16.92 by the end of the day.
In CEO Andrew Dudum's words, the company has never been focused on sensational headlines about its performance on the first trading day. The stock’s all-time-high soon followed, closing at $23.99 on January 31, 2021, and then started declining all the way down back to their pre-IPO level of $10. The stock price is now at $6.85 as of November 25, 2021.
Andrew Dudum, who owns over 200 thousand Hims shares, has an estimated net worth of $61.5 million.
So What About Investing Now?
So what does all this mean? Is the moment gone for investing into Hims & Hers? Maybe. The stock looked like it could do really well at the time of the IPO, but soon fell to its pre-IPO level. The graph shows a clear pump-and-dump peak. Looks like pro traders went in low (probably before the IPO), sold at a high and are probably not interested in the stock anymore.
However, Hims is far from being a meme stock. It’s an interesting, modern company with what seems to be a future-proof business model, offering healthcare services that will still be in demand in years to come. The fact that the stock price is low can be seen as both a risk and an opportunity. If you use Hims services, this in itself could be a reason to invest in the company or at least add it to your watchlist and keep an eye on important company news.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
Is Hims a public company?
Yes, Hims & Hers Inc. has been a public company since the beginning of 2021. When a company launches an IPO, this means they are becoming public.
When is Hims going public?
Hims went public on January 19, 2021. The IPO was listed on the NYSE via a SPAC.
When is the Hims IPO date?
The official IPO date was first planned for the end of 2020 but their IPO date was moved to January 19, 2021.