(Reuters) - GoHealth Inc GOCO.O said on Tuesday it raised $913.5 million in its initial public offering, pricing its shares above the indicated price range amid rapid growth in its U.S. online health insurance marketplace.
The IPO, which priced 43.5 million shares at $21 each, more than quadrupled the valuation of the online health insurance broker in less than a year.
The indicated price range was $18 to $20. The company was previously looking to sell 39.5 million shares.
The IPO gives GoHealth a valuation of close to $6.6 billion, 10 months after private equity firm Centerbridge Partners LP invested in it at a $1.5 billion valuation.
GoHealth sells health insurance online, a business that has grown rapidly since the passage of the Affordable Care Act in 2010. The Chicago-based company has since expanded to various U.S. health insurance markets, including selling Medicare plans to senior citizens through its website.
GoHealth expects to see continuous growth as more baby boomers, who are used to buying services online, turn 65.
Last year, GoHealth’s net revenue increased 138.5% to $539.5 million. Its net income in 2019 rose to $30.5 million from $28.1 million in 2018.
The coronavirus outbreak could positively affect GoHealth’s business by driving more Americans to purchase insurance online, rather than through face-to-face interactions, the company said in its IPO prospectus.
A record $184 billion was raised in U.S. equity capital markets in the second quarter, according to Refinitiv IFR data. Over $8.9 billion worth of IPOs in the second quarter priced above the target range, the highest amount since the third quarter of 2014, according to Dealogic.
GoHealth’s founders and Centerbridge will control the company once it goes public. Its shares are scheduled to start trading in New York on Wednesday under the ticker ‘GOCO’.
Goldman Sachs, Bank of America and Morgan Stanley are lead underwriters on GoHealth’s IPO.
Reporting by Rebecca Spalding in New York; Additional reporting by Juby Babu in Bengaluru; Editing by Tom Brown and Leslie Adler