Castlight Health's initial public offering, which was expected to value the company at up to $2 billion, has resulted in a $3.2 billion valuation.
Shares for the IPO were initially priced at $16, but high demand caused the stock to open at $37.50 during trading March 14, according to The Wall Street Journal.
Castlight Health's cloud-based software tracks healthcare costs, such as physician visits or laboratory results, giving employers, healthcare organizations and others a better idea where healthcare resource efficiency could be improved.
The high valuation is based mostly on optimism about the company's future rather than past performances — the now-$3.2 billion company brought in just $13 million in revenue last year, according to the Journal.
Castlight Health was founded by Todd Park, the co-founder of athenahealth and the current U.S. chief technology officer. The company had previously raised more than $160 million in two rounds of venture capital funding.
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