Clover Health is going public. The provider, which offers Medicare Advantage plans, has chosen to go public through a SPAC sponsored by former Facebook executive Chamath Palihapitiya. The SPAC taking Clover Health public is Social Capital Hedosophia Holdings Corp. III or IPOC.
The Clover Health and IPOC deal will see the healthcare startup follow in the footsteps of Nikola and DraftKings among others. When is Clover Health going public? Should you buy Clover Health stock and where can you buy it?
When is the Clover Health and IPOC stock IPO?
Clover Health expects to complete the deal with IPOC in the first quarter of 2021. The deal values Clover Health at $3.7 billion. The Clover Health IPO should expand opportunities for investors in the healthcare sector.
We’re excited to announce plans to become a publicly-traded company! Upon closing, the transaction will support Clover’s mission to improve every life, providing significant capital for us to scale and improve health outcomes for seniors across the U.S. https://t.co/U4JmyzWeRK— Clover Health (@Clover_Health) October 6, 2020
Should you buy the Clover Health and IPOC stock IPO?
Clover Health is a fast-growing healthcare startup. It generated $457 million in revenue in 2019. Clover Health expects its revenue to rise to $880 million in 2021 and to $1.7 billion in 2023. The startup sees a long growth runway ahead. For example, Clover Health expects its revenue to hit $25 billion if it captures 12 percent of the addressable market.
The uptake of Medicare Advantage plans has been rising steadily. There were 5.6 million enrollments in 2005 compared to 22 million in 2019. The enrollments topped 24 million in 2020 and are on track to reach 26 million in 2021. Clover Health stock may appeal to investors seeking exposure to the fast-growing private health insurance sector.
The 2021 Medicare Advantage average monthly premium is expected to ⬇️ 11% from 2020 premiums, the lowest in 14 years for the >26 million #Medicare beneficiaries projected to enroll in a Medicare Advantage plan. https://t.co/9Y9DSt4mQa pic.twitter.com/kDKXCwOC8b— Administrator Seema Verma (@SeemaCMS) September 24, 2020
Where to buy the Clover Health and IPOC stock IPO
If you want to own a stake in Clover Health, where can you buy the stock? The good news is that you don’t have to wait until Clover Health completes its merger with IPOC to buy the stock.
The deal that Clover Health has cut with IPOC will see IPOC stock transform into Clover Health stock after the transaction closes. Currently, IPOC stock trades on the NYSE and any interested investor can access it. You will need to have a stock trading account to be able to buy IPOC stock that will become Clover Health stock. You can open a stock trading account with online brokers like Webull, Tastyworks, Robinhood, Cash App, SoFi Invest, Vanguard, and Charles Schwab.
How to buy the Clover Health and IPOC stock IPO on Robinhood
Robinhood is one of the most popular online brokers. To buy Clover Health and IPOC stock on Robinhood, you will need to create a Robinhood trading account and fund it. Robinhood offers several account types for investors to choose from.
After you open the account, you can search for Clover Health using the IPOC symbol. You can select the number of shares to purchase and place your order. You can start investing in stocks on Robinhood with as little as $1 thanks to the fractional share purchase feature. Schwab, Cash App, and SoFi Invest also support fractional share purchases.