Chicago-based GoHealth has filed to raise $750 million in an initial public offering (IPO) of its Class A common stock, according to an amendment to its registration seen by Seeking Alpha.
Thus far, the company has received $869 million from investors, with one of them being Centerbridge Capital Partners.
The company, which provides online health insurance software and direct-to-consumer signups for Medicare Advantage, could succeed based on its “strong growth trajectory, excellent prospects, solid balance sheet, impressive operational metrics and a reasonably priced IPO,” according to the report.
GoHealth covers around 10 percent of Medicare Advantage enrollments in the U.S. The initial idea for the company was to improve the status of online health insurance ordering through brokers.
Research shows that online health brokering could reach $31.3 billion this year, boosted by factors like increased comfort dealing with daily needs online and improved technology allowing for more automation to let the process flow more seamlessly.
In 2019, one third of all Medicare participants had been enrolled in Medicare Advantage plans, too, and as baby boomers start to retire in greater numbers, the number enrolled in those plans will likely increase by around 8 percent per year, Seeking Alpha says.
As of March 31, 2020, GoHealth had $152.4 million in cash and $840 million in total liabilities. The company wants to sell 39.5 million shares for $19 per share, the news outlet reported, and the total will come out to around $750.5 million. The company is hoping to buy the LLC of the operating company and also have some money left over for future expansion plans.
GoHealth originally was seeking around $100 million for its IPO filing.
The company’s ambitions come during the coronavirus pandemic, when most hospitals and doctors are only focusing on the most serious cases so as to save space mostly on the COVID-19 cases. Now, as some are reopening, the hardships with paying for health care due to sky-high unemployment numbers has proved a hardship for the medical field as patients stay away.
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