Please ensure Javascript is enabled for purposes of website accessibility

Oscar Health Raises IPO Price; Shares to Start Trading Today

By Eric Volkman - Mar 3, 2021 at 10:40AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The next-generation health insurer will reap gross proceeds upward of $1.11 billion if buyers think the new price is right.

Oscar Health (OSCR -0.52%) lifted the price range of its initial public offering (IPO) on Tuesday. The new pricing is $36 to $38 per each of the 31 million shares being offered, up from the previous $32 to $34. With that enhancement, Oscar Health, a next-generation health insurance provider, stands to reap at least $1.11 billion in gross proceeds from the IPO.

Following the IPO, the company is slated make its debut on the New York Stock Exchange today. Its shares should trade under the ticker symbol OSCR.

Stethescope atop US currency and insurance claim form.

Image source: Getty Images.

Oscar was founded in 2012 and has had a higher degree of visibility than usual for a health insurance company, particularly one that has been privately held until now. Part of this has been the multiyear marketing campaign to give it an image as a "friendlier" and more responsive insurer. Perhaps a bigger deciding factor is the name recognition of its co-founder, Joshua Kushner, who is the brother of Jared Kushner, the headline-grabbing former senior advisor to ex-President Donald Trump.

Oscar is coming to market after a relatively soft year. In 2020, its total revenue slid by 5% compared with 2019, to land just shy of $463 million. This was on the back of earned premiums that declined 3%. The company's net income, meanwhile, deepened considerably to a loss of nearly $407 million, against the $261 million shortfall of 2019.

Nevertheless, in light of the relatively strong star power Oscar carries and the fact that its IPO price was raised considerably, demand should be high for the shares on Wednesday.

According to its latest IPO prospectus, Oscar will use roughly $167 million of the IPO proceeds to retire debt. The remainder is for "general corporate purposes," which might include such activities as technology development and acquisitions.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Oscar Health, Inc. Stock Quote
Oscar Health, Inc.
OSCR
$5.69 (-0.52%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.