Bright Health Going Public at $18/Share Today

Bright Health Going Public at $18/Share Today

The Minnesota-based health insurance provider is offering fewer shares at lower price than previously outlined

Bloomington-based Bright Health Group Inc. is set to go public today at $18 per share. That’s lower than the range outlined in a previous filing with the U.S. Securities and Exchange Commission. A June 15 filing from Bright Health listed the potential price range between $20 and $23 per share.

The IPO is offering fewer shares at a lower price than previously outlined.

At the top of the previous range Bright Health had been in line to raise as much as $1.55 billion from its initial public offering. An overnight press release from the company indicated that it is now slated to reap $924.3 million in gross proceeds and as much as $1.035 billion if underwriters fully exercise their options to buy additional shares.

The total number of shares has also been trimmed. Bright Health had originally outlined plans to issue 60 million shares with as much as an additional 7.2 million shares available for underwriters to acquire. Now it will offer 51.35 million shares with options for underwriters to acquire 6.162 million shares. That’s roughly 9.7 million fewer shares than the company previously

Bright Health filed for its initial public offering on May 19.

Its filings show that Bright Health posted revenue of $1.2 billion in 2020 with a net loss of $248.4 million.

For just the first three months of 2021, Bright Health saw $874.6 million in revenue—a 340 percent increase compared to the first quarter of 2020.

Founded in 2015 Bright Health has emerged as the rare “unicorn” among Minnesota startups. In market parlance a unicorn is a company with a valuation of at least $1 billion. Before filing to go public Bright Health had raised $1.5 billion in venture capital financing, a number that might not raise eyebrows in Silicon Valley but is unheard of in Minnesota.

The company was originally based in the North Loop area of downtown Minneapolis. Its initial filing in May disclosed that the company had relocated its headquarters to Bloomington. The company had not previously announced the move.