GoHealth has announced its IPO for Wednesday and has set a price range of $18 to $20 per share. The company wants to list its Class A common stock on the Nasdaq with the ticker symbol “GOCO”.
GoHealth has announced a price range for its Initial Public Offering (IPO) of its Class A common stock. Scheduled for Wednesday, 15th July, the company expects to sell a total of 39.5 million shares at between $18 to $20 per share. At this range, GoHealth plans to raise about $750 million from the upcoming IPO. The leading health insurance marketplace applied to list its Class A common stock on the Nasdaq with the ticker symbol “GOCO”.
According to the company, there will be two classes of common stock after the IPO – Class A and Class B. Each share of the two classes gives its holder one vote per share on all matters presented to stakeholders. Although a few hundred million Class B shares will come with votes, these shares will have no “economic interest in GoHealth, Inc.” Class B shares have LLC interests that give holders certain rights. Holders of the Class B shares have the right to exchange their shares for Class A stock shares on a one-for-one basis.
So far, GoHealth has received a total of $896 million from investors. In 2019, GoHealth was valued at about $1.5 billion after buyout firm Centerbridge acquired a majority of the company. A Reuters report stated that the deal would give Centerbridge a majority stake in GoHealth Limited Liability Company (LLC). The Centerbridge investment was to help GoHealth “improve its balance sheet, further invest in technology and innovation, and deepen market penetration for the benefits of our customers and the customers they serve,” the Co-founder of GoHealth, Clint Jones said.
GoHealth Plans After Its IPO
In a recent regulatory filing by GoHealth, the company explained its plans for the sale profits. Apart from redeeming the LLC interests, they also hope to use some money for the company’s growth. The company revealed:
“GoHealth Holdings, LLC intends to use the net proceeds from the sale of LLC interests to GoHealth, Inc. to pay $399.2m in cash to partially redeem certain of the LLC interests held directly or indirectly by the Continuing Equity Owners, to satisfy in full $100m in aggregate face amount of an existing equity instrument in connection with the Transactions and for general corporate purposes to support the growth of the business.”
Earlier, GoHealth expected to raise $100 million from the Class A common stock IPO. Regardless, GoHealth has specific plans for the expected income. A filing with the U.S. Securities and Exchange Commission (SEC) reads:
“Our platform utilizes proprietary technology, machine-learning capabilities, data, efficient business processes, and highly skilled and trained licensed agents…to connect consumers with health insurance carriers, or carriers, through multiple channels.”
A copy of the preliminary prospectus about the offering is available from any of the IPO’s managing bookrunners. The managing bookrunners are Goldman Sachs & Co, BofA Securities, and Morgan Stanley. The companies acting as bookrunners for GoHealth are Barclays, Credit Suisse, Evercore ISI, RBC Capital Markets, and William Blair. Also, Cantor, SunTrust Robinson Humphery, and Loop Capital Markets are acting co-managers for the offering.
In recent years, GoHealth has developed significantly. The company pulled a 139% increase of $539.5 million over the previous year’s net revenue of $226.2 million. In the first quarter of 2020, GoHealth earned $141 million in revenue with a net income of $1.4 million. By the end of the most recent quarter, the company’s revenue was “between $118.0m and $130.0m.”
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