Health insurance startup Bright Health Group has raised $924.3m in the initial public offering of its 51.3m shares.
Bright Health, which is backed by Tiger Global, priced the shares at $18 per share but had issued a targeted price range of $20-23.
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The IPO valued the company at $11.23bn, Reuters reported.
As part of the offering, Bright Health granted the underwriters a 30-day option to purchase up to an additional 6,162,000 shares of common stock at the IPO price, less underwriting discounts and commissions.
Bright Health intends to use the proceeds to repay all outstanding borrowings under its credit agreement.
The shares are expected to begin trading on the New York Stock Exchange from 24 June 2021, under the ticker symbol “BHG.”
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By GlobalDataJP Morgan, Goldman Sachs, Morgan Stanley and Barclays were the lead book-running managers for the offering.
It has two market-facing businesses NeueHealth and Bright HealthCare. Through NeueHealth it delivers virtual and in-person clinical care through primary care clinics.
Bright HealthCare sells Medicare and Commercial health insurance products in 14 states of the US.
Founded in 2015, Bright Health claims to have generated over $1.2bn in revenue in 2020.
Reuters reported that insurers net losses nearly doubled to $248m in 2020 from $124m in 2019.
Bright Health raised $500m in September 2020 with backing from Bessemer Venture Partners, Greenspring Associates, New Enterprise Associates, The Blackstone Group, Tiger Global Management and T Rowe Price Associates.
Earlier this month India’s Star Health and Allied Insurance raised $164.28m (INR12bn) in a pre-IPO funding round led by Singapore’s state investor GIC.
