June 24 (Reuters) - Bright Health Group's shares
fell more than 5% in their New York Stock Exchange debut on
Thursday, valuing the Tiger Global and Blackstone Group Inc
backed health insurance startup at $10.6 billion.
The company's stock opened at $17, compared with the initial
public offering price of $18 per share. Bright Health had priced
51.3 million shares below its targeted price range of $20 to
$23, raising $924.3 million.
Bright Health's listing comes as more people seek remote
healthcare due to the COVID-19 pandemic, supercharging the
telemedicine market and prompting the companies to expand their
Health insurance startup Oscar Health, backed by
Google parent Alphabet Inc, was valued at over $7
billion in its market debut in March, while Clover Health
last year agreed to go public through a merger with a
blank-check firm backed by venture capitalist Chamath
Minneapolis-based 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. It also sells Medicare and
commercial health insurance across 14 states in the United
Bright Health, co-founded in 2015 by UnitedHealth Group
Inc's former chief executive officer Bob Sheehy,
generated over $1.2 billion in revenue in 2020, underscoring a
boom in the healthcare technology sector.
The company's net losses nearly doubled to $248 million in
2020 from $125 million a year earlier, and it has been reporting
losses since it was founded.
Bright Health 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, bringing
the total equity raised to more than $1.5 billion.
J.P. Morgan, Goldman Sachs, Morgan Stanley and Barclays were
the lead underwriters for the offering.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by