Bright Health raised $924 million on a valuation of approximately $12 billion during its initial public offering on Thursday, with the Minneapolis-based insurtech booking the largest IPO among the health insurance startups that went public this year.
The company’s shares failed to reach their estimated price of $18 during the IPO, meaning its valuation fell about $2 billion short of what investors expected. Bright Health is the last of the insurtechs expected to make an IPO this year, with Alignment Healthcare, Oscar Health and Clover Health all going public earlier in 2021.
Bright Health is the largest of these new-age insurance companies and its valuation reflects the size of its membership, said Blake Madden, a healthcare analyst at VMG Health. “Despite the maybe a little bit of mixed reviews on the IPO, I think it was like the most valuable digital health IPO in history,” he said.
As of April,