Based in Minnesota, Bright Health has a lot of details to work out before divulging them to the public. However, the company's equity financing over the last few years makes it clear that it has been working toward this moment for quite some time.
Eight months after the Series E funding round, Bright Health Group, Inc. announced that it's going public.
What Bright Health's registration statement tells us about its IPO
Bright Health hasn't publicized how many shares it plans to sell and at what price it wants to debut. The $100 million report is likely a placeholder for a yet-to-be-disclosed funding amount.
The lead underwriters for the deal are J.P. Morgan, Goldman Sachs, Morgan Stanley, and Barclays. They'll be supported by Bank of America Securities, Citigroup, and Piper Sandler.
Bright Health was born from a need to do things differently.
Founded by a group of former UnitedHealth Group managers, Bright Health keeps a keen focus on the Affordable Care Act market. It's a different take on healthcare in the U.S., which is often tied to someone's employment.
Where Bright Health stands in the healthcare market
Bright Health tackles three innovative areas within the healthcare niche, including:
- Healthcare financing
- Healthcare optimization
- Personalized care delivery
Pitchbook rated the company as the most valuable venture capital-backed business in Minnesota. Bright Health has also landed itself at the top of the 10 Best Tech Startups in Minneapolis. The company also earned a spot on Forbes' Next Billion-Dollar Startups list.
While we haven't determined how much Bright Health earns from its IPO, we do know that the company plans to use the funds to acquire additional companies. Bright Health already owns Zipnosis, which is a Minnesota-based telehealth company. It also plans to add Central Health Plan of California to its list of acquisitions.
A peek at Bright Health's earnings
In 2020, Bright Health earned $1.2 billion in total revenue. With $874 million in revenue in the first quarter of 2021 alone, the company is already set to surpass its YoY revenue three-fold. Investors will have to wait and see what upcoming quarters look like to ensure that the company is on track to reach that goal, but the future looks bright for Bright Health.
As for losses, 2020 brought $248 million in operating losses. The first quarter of 2021 brought a slimmer metric of about $20 million in losses, which means that the company is really tightening up its bottom line. Bright Health's cash flow for operating and financing activities is in the green at $343 million and $200 million for the first quarter, respectively.
Look out for the Bright Health ticker symbol
Bright Health plans to list on the NYSE under the ticker symbol "BHG." The ticker isn't set in stone, but it's a good starting point for investors to keep their eyes on. The public will be informed about the starting price and date prior to the debut.
If Bright Health's IPO exceeds $630 million, it will become the largest IPO in Minnesota history and surpass a record set by Ceridian HCM Holding Inc. (NYSE:CDAY).