GoHealth is seeking USD 900mn+ in IPO

Online health insurance marketplace GoHealth has announced the pricing of its planned initial public offering (IPO) which could raise up to USD 908.50 million if overallotments are exercised in full.

The business is looking to sell 39.50 million class A shares at a price of between USD 18.00 and USD 20.00, raising initial proceeds of USD 590.00 million, through a flotation on Nasdaq, with the company listing under the ticker symbol GOCO.

Goldman Sachs, BofA Securities and Morgan Stanley are the joint underwriters for the deal and have been granted a 30-day green shoe option to purchase an additional 5.93 million stocks at the IPO price.

Barclays, Credit Suisse, Evercore ISI, RBC Capital Markets and William Blair are also working on the flotation.

In 2019, GoHealth had over 380,000 medicare commissionable approved submissions, 139.0 per cent growth in pro forma net revenues and 32.0 per cent adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin.

The group is a leading health insurance marketplace, focused on improving access to healthcare in the US, having already enrolled millions of people in medicare.

GoHealth has a 19-year history of consistent revenue growth and entering new market segments of insurance products.

Founded in 2001, the company posted revenue of USD 141.01 million in the three months ended 31st March 2020, compared to USD 69.09 million in the corresponding period of 2019.

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Adjusted EBITDA rose significantly to USD 34.92 million in Q1 2020 (Q1 2019: USD 7.14 million).

Of the 928 IPOs announced globally in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk, four featured insurance carriers and related activities providers.

In the largest of these deals, peer-to-peer insurer Lemonade listed on the New York Stock Exchange last week, raising USD 308.00 million in proceeds.

This was followed by reinsurance broker Trean Insurance Group planning a USD 100.00 million IPO.

Other targets included Caribbean Assurance Brokers and Aplus Asset Advisor.

© Zephus Ltd

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