The IPO has more than quadrupled the valuation of GoHealth in less than 12 months
US-based online insurance broker GoHealth has raised $913.5m in its initial public offering (IPO) that was priced above the indicated price range.
In the IPO, the company issued its 43.5 shares at $21 per share, while the indicated price range was $18 to $20.
The online health insurance broker was previously looking to sell 39.5 million shares.
The IPO has given approximately $6.6bn valuation to GoHealth, following an investment from private equity firm Centerbridge Partners at a $1.5bn valuation last year, Reuters reported.
In addition, the underwriters are provided with a 30-day option to buy an additional 6,525,000 shares of Class A common stock at the initial public offering price, less the underwriting discount.
According to the company, the shares of Class A common stock are expected to start trading on The Nasdaq Global Select Market under the ticker symbol “GOCO” on 15 July 2020
GoHealth is a Chicago-based insurance firm providing online health insurance
The Chicago-based insurance firm is engaged in online health insurance business, which has seen rapid growth following the passage of the Affordable Care Act in 2010.
In addition, the company has also expanded the business to different US health insurance markets, including selling Medicare plans to senior citizens through its online portal.
GoHealth’s net revenue increased by 138.5% and reached $539.5m last year, with a net income of $30.5m compared to $28.1m in 2018.
In its IPO prospectus, the company said that the coronavirus outbreak could boost its business by driving more Americans to purchase insurance online, rather than offline.
Goldman Sachs & Co., BofA Securities and Morgan Stanley served as managing bookrunners, while Barclays, Credit Suisse, Evercore ISI, RBC Capital Markets and William Blair served as bookrunners for the company.
Cantor, SunTrust Robinson Humphrey and Loop Capital Markets served as co-managers.