Insurtech company Bright Health is heading to the New York Stock Exchange with an initial public offering of $60 million in shares. According to the company’s SEC filing, the initial stock price is expected to be somewhere in the range of $20 to $23 per share.
The Minneapolis-based company is shooting for a roughly $14 billion valuation in the new offering, Reuter’s reports.
This news comes less than a year after Bright Health closed a whopping $500 million Series E funding round, which brought its funding to over $1.5 billion.
The company began as a consumer-focused health insurance and tech business. By partnering with a single health system within a market, Bright Health says patients get better access to affordable care while providers receive the tools to optimize their practice.
WHY IT MATTERS
Bright Health is now joining several other healthcare insurtech companies on the public market. For example, Oscar Health, which also caters to the consumer market, filed its IPO in December. Additionally, competitor Clover health went public via a SPAC merger in October.
While insurtech companies are just emerging onto the public market, many of the major payer organizations in the U.S., including United Healthcare Group, Anthem and Cigna, are publicly traded companies.
It’s clear that Bright Health has its eyes on expansion for the future, and going public may help this goal. In the SEC filing, it boasted over $1.2 billion in revenue in 2020 across 99 markets and 14 states.
THE LARGER TREND
Founded in 2016, Bright Health has been an investor darling. In addition to its more recent $500 million raise, it raked in $635 million in 2019 and closed rounds worth $200 million, $160 million and $80 million in the three years prior.
The company said it plans to use the most recent funding to expand into small-business plans.
In April, Bright Health purchased telehealth startup Zipnosis for an undisclosed sum.