Bright Health Group's shares fell more than 5 per cent in their New York Stock Exchange (NYSE) debut on Thursday, valuing the Tiger Global and Blackstone Group Inc backed health insurance startup at $10.6 billion. Compared with the initial public offering price of $18 per share, Bright Health Group's stock opened at $17. Bright Health had priced 51.3 million shares below its targeted price range of $20 to $23, raising $924.3 million.
“We are relentlessly focused on the consumer, and we want a high-performing care-delivery model,” Bright Health chief executive officer G Mike Mikan said in an interview on Thursday, according to Bloomberg.
Mikan said Bright Health is addressing a broader market than some other companies. “Our focus is really on serving all consumers. It’s very different than a lot of our other competitors who are focused on one part of the health care system,” he said.
Minneapolis-based 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. It also sells Medicare and commercial health insurance across 14 states in the United States.
Bright Health generated over $1.2 billion in revenue in 2020, underscoring a boom in the healthcare technology sector. The net losses of the company, co-founded in 2015 by UnitedHealth Group Inc's former chief executive officer Bob Sheehy, nearly doubled to $248 million in 2020 from $125 million a year earlier, and it has been reporting losses since it was founded.
Bright Health 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, bringing the total equity raised to more than $1.5 billion. JP Morgan, Goldman Sachs, Morgan Stanley and Barclays were the lead underwriters for the offering. Shares of Bright Health are trading on the New York Stock Exchange under the symbol BHG.
{{/usCountry}}Bright Health 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, bringing the total equity raised to more than $1.5 billion. JP Morgan, Goldman Sachs, Morgan Stanley and Barclays were the lead underwriters for the offering. Shares of Bright Health are trading on the New York Stock Exchange under the symbol BHG.
{{/usCountry}}Bright Health's listing comes as more people seek remote healthcare due to the coronavirus pandemic, supercharging the telemedicine market and prompting the companies to expand their scale.
(With agency inputs)