Goldman Sachs – Josh Kushner-Backed Oscar Health to Seek IPO
Oscar Health, the insurtech backed by Josh Kushner, has made public the regulatory filing for its initial public offering.
Oscar Health has filed to raise $100 million, according to a prospectus. It will trade on the New York Stock Exchange under the symbol OSCR. The start-up didn’t disclose how many shares it would sell or their price range. That will come with future filings. The $100 million is also a placeholder that likely will change with additional filings.
Kushner is the founder and managing partner of Thrive Capital and helped start Oscar Health in 2012 with CEO
and Kevin Nazemi, a former Microsoft executive. Kushner is the brother of former President
‘s son-in-law Jared, who served as a senior adviser in the White House.
The filing sets up Oscar Health to possibly go public later this month. The start-up in December said it had filed confidentially with the Securities and Exchange Commission to go public.
Morgan Stanley, and Allen & Co. are underwriters on the deal.
Based in New York, Oscar Health uses a technology platform and data to offer health insurance, including individual and family plans, as well as small-group and Medicare Advantage plans, for about 529,000 members. Members can find doctors, get a flu shot, speak to physicians virtually, and pay bills using Oscar Health. Some 47% of its subscribing members are active monthly users, the prospectus said.
Losses for Oscar widened in the past year. The start-up reported $406.8 million in losses for the year ended Dec. 31 compared with $261.2 million in losses for the same period in 2019. Total revenue dropped 5.2% to $462.8 million for the Dec. 31 period. It had 1,839 employees.
Oscar Health has raised about $1.6 billion in funding, including a $140 million round in December and a $225 million capital raise in June. Oscar investors include Alphabet (GOOGL), Tiger Global Management, General Catalyst, Khosla Ventures, Lakestar, Thrive Capital, Dragoneer, Baillie Gifford, Coatue, Founders Fund, and Reinvent. The filing didn’t disclose how much of Oscar the investors own. That will also come with future filings.
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