Bright Health to Seek $1.5B in IPO
Bloomington-based Bright Health Group Inc. has always been in a class by itself among Minnesota startups. It has raised $1.5 billion in venture capital financing to date.
Now as it tees up its planned initial public offering, Bright Health is going big again. A new filing with the U.S. Securities and Exchange Commission indicates that the company is looking to raise up to $1.55 billion through its IPO.
Bright Health plans to issue 60 million shares of stock priced at $20 to $23 per share. Underwriters will have options to purchase an additional 7.2 million shares within 30 days of the offering. To raise $1.55 billion, the IPO shares would have to be priced at $23 per share and underwriters would have to fully exercise their options to buy additional shares.
A report in Insider said that Bright Health would be valued at $13.4 billion based on the midpoint of estimated share price range: $21.50 per share.
Its filings show that Bright Health posted revenue of $1.2 billion in 2020 with a net loss of $248.4 million.
The new filing details Bright’s Health largest shareholders. Approximately 59 percent of the company is owned by three venture capital funds.
New Enterprise Associates and affiliated funds currently own 37.7 percent of the company. Bessemer Venture Partners and affiliated funds own 13.9 percent. Both New Enterprise and Bessemer are based in Silicon Valley. Baltimore-based Greenspring Associates and affiliated funds own 7.5 percent of Bright Health.
Bright Health CEO G. Mike Mikan owns 1.8 percent of the company. Bright Health co-founder and original CEO Bob Sheehy owns 3.7 percent.