Agilon healthcare “built for physicians by physicians” is venturing for a valuation of up to $9 billion in its initial public offering (IPO), seeking a clutch of companies looking to cash in on the record run in U.S. capital markets. The company said it has projected to raise more than $1 billion in its IPO by selling 46.6 million shares at a price range of $20 and $23 per share under the “AGL” listed by the New York Stock Exchange.
- Founded in 2016, Agilon is a healthcare platform that helps connect primary care physicians with patients who are mostly senior citizens. The company’s platform has around 210,000 patients registered in Medicare Advantage plans. Agilon’s net loss attributable narrowed to $60 million last year, from a loss of $282.6 million in 2019. Revenue jumped 53% to $1.22 billion in 2020, while membership rose 45%.
- Agilon is the latest healthcare services company to tap the public equity markets. Alignment Healthcare, which renders data and technology as well as healthcare services to seniors through its Medicare Advantage plans, went to the public in late March.
- Alignment’s stock fell below its $18 IPO price during its first day of trading, closing down 3.8%, at $17.31. In contrast, Signify Health, which also offers healthcare services to patients on Medicare Advantage, rose nearly 32% in February.
- Agilon is strengthened by private equity. Clayton, Dubilier & Rice established the company in 2016, when it consolidated the Primary Provider Management Co. with Cyber-Pro Systems. CD&R will own 57.4% of Agilon after the IPO, while Morgan Stanley (MS) will have 6.7% and Capital Group will hold 5.6%.