Alignment Healthcare Inc., a Medicare Advantage plan provider, went public Friday with an initial public offering that raised about $500 million.
The IPO gave the company as a whole a total market capitalization value, or total stock value, of about $3.3 billion. Shares trade on Nasdaq under the symbol ALHC.
Alignment Healthcare is an Orange, California-based carrier with about 81,500 Medicare Advantage plan enrollees in California, Nevada and North Carolina.
The company reported a net loss for 2020 on $959 million in revenue.
The company says it works with brokers and pays sales commissions.
CEO John Kao, who started the firm in 2013, began his career as director of investment banking at a division of Bank of America. He got into insurance as vice president of mergers and acquisitions at FHP International in 1995.
In 1997 he became CEO of the ventures division at PacifiCare. Then in 2000, he moved to TriZetta Group where he spent five years as the chief revenue officer. Later, he spent five years as president of CareMore Medical Enterprises.
He has a bachelor’s degree from Santa Clara University and a master’s degree in business from UCLA.
The lead investors of Alignment have been General Atlantic, T. Rowe and Durable.
John Kao (Photo: Michael Nagle/Bloomberg)