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Alphabet-backed Oscar Health eyes as much as $6.7 bln IPO valuation

Oscar Health, a health insurance start-up backed by Google parent Alphabet Inc, will raise as much as $1.05 billion in its initial public offering, according to a regulatory filings on Monday.

Adds details on IPO, background on telehealth demand

Feb 22 (Reuters) - Oscar Health, a health insurance start-up backed by Google parent Alphabet Inc GOOGL.O, will raise as much as $1.05 billion in its initial public offering, according to a regulatory filings on Monday.

The offering is expected to be priced between $32 and $34 per share, valuing the company at $6.7 billion at the upper end of the pricing range.

The company, founded in 2012, allows patients to schedule physician visits, check lab results, make emergency virtual appointments and refill prescriptions through its mobile app or online platform.

The IPO comes at a time when the COVID-19 pandemic has helped boost demand for telehealth services and companies are looking to expand their footprint.

Oscar Health, which serves 529,000 members, has not been profitable since its inception, and reported a net loss of $406.8 million in 2020. (https://bit.ly/37AeU9M)

The company was founded by Mario Schlosser, Kevin Nazemi, who is no longer a part of the company, and Josh Kushner, brother of former U.S. President Donald Trump's adviser and son-in-law Jared Kushner.

(Reporting by Manas Mishra in Bengaluru; Editing by Saumyadeb Chakrabarty and Ankur Banerjee)

((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manasmishra24; within U.S. +1 646 223 8780, outside U.S. +91 806749 2709;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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