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A scene inside the Oscar Center in the Brooklyn borough of New York.
Kholood Eid/Bloomberg
Oscar Health, the insurance-technology company backed by Josh Kushner, is slated to go public early next month, two people familiar with the situation said.
Oscar is scheduled to price its deal on March 2, and trade the next day, one person said. The company is offering 31 million shares at $32 to $34 each, meaning it could raise as much as $1.05 billion if the stock sells at the top of that range. It is expected to trade on the New York Stock Exchange under the symbol OSCR.
Goldman Sachs,
Morgan Stanley,
and Allen & Co. are underwriters on the deal.
The Oscar Health offering comes during a lull in the market for initial public offerings. Due to the Presidents’ Day holiday on Feb. 15, many bankers were on vacation last week, so few companies began road shows, or meetings to explain their businesses to potential investors. This has led to a pause in new issues, people said.
Only two traditional IPOs—Auddia (ticker: AUUD) and
Virpax Pharmaceuticals
(VRPX)—began trading last week. No new issues are expected this week and only Oscar Health is currently on tap for next week, people said.
Normal IPOs trading activity is expected to resume in mid-to-late March, one of the people said. “It’s definitely a breather,” the second person said.
Oscar Health, of New York, uses data and a technology platform 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, according to the prospectus for the deal.
Losses for Oscar widened in the past year. The start-up, employing about 1,800 people, reported $406.8 million in losses for the year ended Dec. 31, compared with $261.2 million in losses for 2019, the prospectus said. Total revenue dropped 5.2% to $462.8 million.
Kushner is the founder and managing partner of Thrive Capital. He helped start Oscar Health in 2012 with CEO
Mario Schlosser
and Kevin Nazemi, a former Microsoft executive. Kushner is the brother of former President
Donald Trump
‘s son-in-law Jared, who served as a senior adviser in the White House.
Josh Kushner and Thrive will have about 76% of voting power after the IPO, the prospectus said.
Write to Luisa Beltran at [email protected]
