A day before its planned US public market debut, Google-parent Alphabet Inc.-backed health insurer Oscar Health had raised target range of its initial public offering (IPO) which in effect could potentially bucket up a nearly $8 billion in market valuation.
In point of fact, according to the announcement released earlier in the day, the New York City-based health insurer, which has planned to sell off as many as 31 million ADSs (American Depository Shares) on its IPO, had raised its IPO price range between $36 per share and $38 per share from an earlier target range between $32 to $34 apiece, while at the upper end of its targeted initial offering tag, Oscar could raise up to $1.18 billion at its slated IPO scheduled to take place on Wednesday, potentially valuing the company at roughly $8 billion as beforementioned.
Alphabet-backed Oscar Health seeks $8 billion valuation in US IPO
If truth is to be told, an initial public offering for the New York City-based health insurer came forth at a time, while the US IPO market seemed to be at its strongest in more than half a decade.
Besides, an ongoing pandemic outbreak, which had turbocharged the telemedicine market in the United States, would more likely to assist in Oscar Health’s latest move to go public at a higher IPO valuation, suggested industry analysts.
In tandem, Google-parent Alphabet-backed Oscar health that has 529,000 users to-date, primarily focuses on scheduling physicians’ visits for patients, checking laboratory results alongside making prescriptions through its online platform or mobile app and scheduling emergency virtual appointments with physicians.
Apart from that, Leading US lenders and financial services providers such as Goldman Sachs, Morgan Stanley, Wells Fargo and Allan & Co would act as the lead underwriters for Oscar Health’s US offerings, said the New York-based health insurer.