Late last night Oscar Health, a tech-enabled medical insurance provider, priced its IPO at $39 per share. The final price came in $1 per share above its raised IPO guidance; Oscar Health had originally targeted a $32-$34 per-share IPO price.
Some 37,041,026 shares were sold at $39, including 36,391,946 offered by the company itself. Not counting shares reserved for the company’s underwriters — more on those here — Oscar Health found at least $1.44 billion worth of demand for its equity at $39 apiece. More than 98% of the funds from the aggregate share sale went to the company’s accounts.
For backers Thrive Capital, Founders Fund, Formation 8, CapitalG, Fidelity, Alphabet, Coatue, Tiger Global and others, the day is a financial coup.
But just how well did the company’s private backers do? To know that, we have to calculate what the company is worth at $39 per share. Oscar sold more shares in its debut than its final S-1/A filing expected, making its ensuing share count slightly tedious to calculate. However, the company’s simple IPO valuation appears to be just over $7.92 billion at its IPO price. IPO investing group Renaissance Capital calculates the company’s fully-diluted valuation, a figure that counts some additional shares, including that have been earned through options that have yet to be exercised, for example, at $9.5 billion.
Oscar Health’s IPO has been a success from several perspectives. From a fundraising viewpoint, the company raised more than it may have initially expected to, comparing its final price point against its initial range. From a valuation perspective, the company is now worth a multiple of its last-known private valuation, some $3.2 billion set during its 2018 Series G, per PitchBook data. The company did raise more private capital between that round and its IPO, but we lack valuation figures for those deals.
The company will begin trading this morning in a notable test for insurtech, and the sub-niche of medical insurtech. TC’s prior notes on the company’s IPO valuation aside, the bidding public have repriced Oscar Health. Now let’s see what the company will manage once it truly begins to float.