Oscar Health (OSCR proposed) increased its IPO’s size at pricing – 37 million shares at $39 each – $1 above its upwardly revised range – on Tuesday night. Oscar took a beating – opening at $36 and closing at $34.80 – in its debut on Wednesday on the New York Stock Exchange.
For the record, the upsized pricing terms were 37 million shares, up from 31 million in the prospectus, and the IPO price of $39 was above the top of Oscar Health’s upwardly revised price range on Tuesday of $36 to $38. In terms of proceeds, the IPO raised about $1.446 billion, or 25.6 percent more than the estimated proceeds of $1.147 billion, if the deal had been priced at the mid-point of its recently increased price range. (Source: S-1/A filing dated March 2, 2021.)
Goldman Sachs, Morgan Stanley, Allen & Co., Wells Fargo Securities, BofA Securities and Credit Suisse are the joint book-runners.
Oscar Health had attracted strong interest from IPO investors because of its tech-driven platform for health insurance – and the anticipation that the stock might perform like Lemonade (LMND).
Alphabet, Google’s parent, is Oscar Health’s largest shareholder, according to the prospectus.
Oscar Health is the first health insurance company built around a full-stack technology platform. The company, founded in 2012 by Joshua Kushner and Mario Schlosser, provides individual and family health insurance plans, Small Group (small business) plans and Medicare Advantage plans. As of Jan. 31, 2021, Oscar Health served 529,000 members in 291 counties in 18 states. The company reported $1.67 billion in revenue and a net loss of $406.3 million for the year ended Dec. 31, 2020, compared with 2019, when its revenue was $1.04 billion and its net loss was $261.2 million.
InnovAge Raises Price Range
InnovAge Holding (INNV proposed) increased its price range early today to $20 to $21, up from $17 to $19, while keeping the number of shares at 16.7 million, ahead of its expected pricing on Wednesday night, March 3, 2021. (Source: S-1/A filing dated March 3, 2021.) This is a NASDAQ listing.
InnovAge Holding is a leading healthcare delivery platform that provides in-home healthcare and community center health services for senior citizens (age 55 and up) who are eligible for both Medicaid and Medicare. The objective is to keep senior citizens in their homes as long as possible and provide healthcare services at a much lower cost than in nursing homes. The company receives payments through direct contracts with Medicaid and Medicare.
J.P. Morgan, Barclays, Goldman Sachs and Citigroup are the joint book-runners of the InnovAge IPO.
The IPO’s proceeds will go to repay debt owed to the two private equity firms – Apax Partners and Welsh, Carson, Anderson and Stowe – that will own 87 percent of InnovAge Holdings after the offering, according to the prospectus.
“I’m going to play both because healthcare is a big part of the economy,” an individual investor told IPOScoop early this week.
SPACS and the Winds of March
The month of March began with the roar of the SPACs: 15 deals were priced Monday night to raise $4.34 billion. Some see that volume – and the weak performance of a few SPACs that began trading today – as a sign that the SPAC gold rush is losing steam.
Mission Advancement Corp. (MACC.U), the SPAC headed by Colin Kaepernick, civil rights activist and former San Francisco 49ers quarterback, was upsized at pricing on Tuesday night, March 2nd: 30 million units, up from 25 million, at $10 each to raise $300 million. The stock opened flat at $10 in its debut Wednesday on the NYSE.
Cantor and Moelis & Co. were the joint book-runners with Loop Capital Markets as the lead manager of the Mission Advancement IPO.
By midday on Wednesday, another nine special-purpose acquisition companies (SPACs) were in the line-up for pricing that night.
As the week continues, more IPOs – and more SPACs – are likely to land on the IPO Calendar, though, as the filings continue to flow into the U.S. Securities and Exchange Commission.
(For more information about these companies, please click the hyperlinks, which will take you to the IPO profiles on IPOScoop.com.)
(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.