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Banks

Alphabet-backed Oscar Health eyes as much as $6.7 billion IPO valuation

(Reuters) - Oscar Health, a health insurance startup backed by Google parent Alphabet Inc, will raise as much as $1.05 billion in its initial public offering, according to a regulatory filing on Monday.

The offering is expected to be priced between $32 and $34 per share, valuing the company at $6.7 billion at the upper-end of the price range.

The company, founded in 2012, allows patients to schedule physician visits, check lab results, make emergency virtual appointments and refill prescriptions through its mobile app or online platform.

The IPO comes as the COVID-19 pandemic boosts demand for telehealth services and companies look to expand their footprint.

At the higher end of the range, Oscar Health would have a fully diluted valuation, which includes securities such as options and restricted stock units, of about $8 billion.

This is well above the $3.2 billion Oscar was worth in a private fundraising round in 2018, according to PitchBook.

Oscar Health, which serves 529,000 members, has not been profitable since its inception and reported a net loss of $406.8 million in 2020. (bit.ly/37AeU9M)

The company was founded by Mario Schlosser, Kevin Nazemi, who is no longer with the company, and Josh Kushner, brother of former U.S. President Donald Trump’s adviser and son-in-law Jared Kushner.

Reporting by Manas Mishra in Bengaluru; Editing by Saumyadeb Chakrabarty, Ankur Banerjee and Arun Koyyur

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