Tiger Global-backed Bright Health aims for over $14 billion valuation in U.S. IPO

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

(Reuters) – Bright Health Group, a health insurtech firm backed by Tiger Global and Blackstone, is aiming for a valuation of more than $14 billion in its U.S. initial public offering, according to a regulatory filing on Tuesday.

Bright Health runs two businesses, NeueHealth and Bright HealthCare, through which it offers virtual and in-person clinical care to patients through affiliated primary care clinics and also sells Medicare and commercial health insurance to about 623,000 consumers in the United States.

The company raised $500 million in a late-stage funding round in September last year from investors such as Tiger Global Management, T. Rowe Price Associates and Blackstone Group Inc, bringing total equity raised to over $1.5 billion.

Bright Health, co-founded in 2015 by UnitedHealth Group Inc’s former chief executive officer Bob Sheehy, said it would sell 60 million shares priced at between $20.00 and $23.00 per share on the New York Stock Exchange, raising about $1.38 billion.

The potential listing comes as more people sought remote healthcare during the COVID-19 pandemic, supercharging the telemedicine market and prompting companies to expand their scale.

Health insurance startup Oscar Health, backed by Google parent Alphabet Inc, was valued at over $7 billion in its market debut in March, while Clover Health last year agreed to go public through a merger with a blank-check firm backed by venture capitalist Chamath Palihapitiya.

Bright Health generated over $1.2 billion in revenue in 2020, underscoring a boom in the healthcare technology sector.

J.P. Morgan, Goldman Sachs, Morgan Stanley and Barclays are the lead underwriters for the offering.

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