Insurance technology start-up Bright Health Group is aiming to raise about $1.3 billion through its initial public offering, according to a Securities and Exchange Commission filing. The Bright Health Group seeks to employ a more consumer-centric approach to health care than legacy healthcare management organizations to improve consumer experiences.
- Foundation: Bright Health Group, founded in 2015 and booked $1.9 billion in sales for the 12 months ended March 31, 2021. It plans to list on the NYSE under the symbol BHG. J.P. Morgan, Goldman Sachs, Morgan Stanley, Barclays, BofA Securities, Citi, and Piper Sandler are the joint bookrunners on the deal. It is expected to price during the week of June 21, 2021.
- Unique relationship: The core Bright HealthCare business has grown to serve roughly 623,000 patients in 14 states in the five years since its founding. The company’s newest offering, NeueHealth, uses technology to connect healthcare providers and payers, and maintains nearly 75,000 unique patient relationships as of April 2021.
- IPO: The Minneapolis-based company, which announced the terms of its IPO, will offer 60 million shares of its common stock. The IPO price is expected to be between $20 and $23 per share. Bright also plans to grant the underwriters a 30-day option to purchase up to an additional 7.2 million shares at the IPO price.
- Healthcare contribution: Bright Health offers individual, family, small business and Medicare Advantage plans and works with local healthcare entities to develop and manage provider networks. It also provides an IT platform that can be used to track health care costs.
- Virtual and in-person care: Bright’s membership totals 623,000, including around 515,000 commercial and 108,000 Medicare Advantage members. In addition, the company includes NeueHealth, which provides virtual and in-person care through 61 affiliated primary care clinics. The company’s IPO terms are similar to rivals Oscar Health and Clover Health, which both aim to raise more than $1 billion through their respective IPOs.