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With Successful IPO, Oscar Health May Be Worth $7.7 Billion

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What You Need to Know

  • Oscar Health has 529,000 enrollees.
  • Most are in the individual and small-group markets.
  • A successful IPO would give it a value of about $15,000 per enrollee.

Oscar Health Inc. is getting closer to turning itself into a publicly traded company.

The New York-based health insurer says in a registration statement, filed Monday, that it hopes to register 35.65 million new shares, sell those shares for $31 to $34 each, and generate a total of up to $1.2 billion in initial public offering proceeds.

An investment affiliate of Google and other investors already own many shares of Oscar stock.

If the IPO does well, Oscar could end up with 166,571,638 shares of Class A common stock outstanding and 35.1 million shares of Class B stock outstanding.

Analysts at Renaissance Capital LLC, a Greenwich, Connecticut-based RIA, estimate a successful IPO could give Oscar Health a total market value of about $7.7 billion.

Oscar Health was founded in 2012 by Mario Schlosser and Joshua Kushner. Kushner is the brother of Jared Kushner, who is the son-in-law of former President Donald Trump.

The company now has about 529,000 enrollees, and most appear to be in the individual and fully insured small group market.

The company reported a $407 million loss for  2020 on $463 million in revenue.

An offering that gave the company a value of $7.7 billion would give the health coverage enrollee relationships a value of about $15.000 each.

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