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March 03, 2021 at 10:02 AM
What You Need to Know
- The initial share price gives the company a market value of about $7 billion.
- The company helps AXA and Berkshire Hathaway reach consumers.
- If it does well, that could help companies like Bestow and Haven Life, and health insurance producers.
Oscar Health Corp., a health insurer, began selling stock to the public this morning through an initial public offering.
Shares of the New York-based company’s stock trade on the New York Stock Exchange, under the symbol OSCR.
Oscar originally predicted, in an offering registration statement posted Feb. 22, that the IPO stock price might be from $32 to $34, that it might end up with about 167 million shares of stock outstanding, and that total offering proceeds might amount to $1.2 billion.
Oscar said Tuesday, in a Form S-1/A registration statement filed with the U.S. Securities and Exchange Commission Tuesday, that it and its investors could sell a total of as many as 35.65 million shares, with a share price range of $36 to $38, for a total deal value of about $1.36 billion for Oscar, its investors and the deal underwriters.
Oscar later said, in a Form S-1MEF filed later, and a separate press release, that the offering could lead to the sale of a total of 42.6 million shares — by itself, Oscar investors and the offering underwriters — at a price of $39 each, producing about $1.7 billion in proceeds.
The Offering
Oscar ended up using $39 as the initial share price.
The price fell to $34.80 — below the IPO price, but above the $32 to $34 range described in the Feb. 22 filing.
Excluding the shares that might be sold by the deal underwriters, the offering will produce about $1.44 billion in revenue, according to the New York Stock Exchange.
The underwriters’ offering could increase the total to about $1.7 billion.
The company’s market capitalization closed Wednesday at about $7 billion, or about $14,000 per health coverage enrollee.
