June 15 (Reuters) - Bright Health Group, a health insurtech firm backed by Tiger Global and Blackstone (BX.N), is aiming for a valuation of more than $14 billion in its U.S. initial public offering, according to a regulatory filing on Tuesday.
Bright Health runs two businesses, NeueHealth and Bright HealthCare, through which it offers virtual and in-person clinical care to patients through affiliated primary care clinics and also sells Medicare and commercial health insurance to about 623,000 consumers in the United States.
The company raised $500 million in a late-stage funding round in September last year from investors such as Tiger Global Management, T. Rowe Price Associates and Blackstone Group Inc (BX.N), bringing total equity raised to over $1.5 billion.
Bright Health, co-founded in 2015 by UnitedHealth Group Inc's (UNH.N) former chief executive officer Bob Sheehy, said it would sell 60 million shares priced at between $20.00 and $23.00 per share on the New York Stock Exchange, raising about $1.38 billion.
The potential listing comes as more people sought remote healthcare during the COVID-19 pandemic, supercharging the telemedicine market and prompting companies to expand their scale.
Health insurance startup Oscar Health (OSCR.N), backed by Google parent Alphabet Inc (GOOGL.O), was valued at over $7 billion in its market debut in March, while Clover Health (CLOV.O) last year agreed to go public through a merger with a blank-check firm backed by venture capitalist Chamath Palihapitiya. read more
Bright Health generated over $1.2 billion in revenue in 2020, underscoring a boom in the healthcare technology sector.
J.P. Morgan, Goldman Sachs, Morgan Stanley and Barclays are the lead underwriters for the offering.
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