GoHealth Drops in Debut After Expanded $914 Million IPO

(Bloomberg) -- Health insurance platform GoHealth Inc. fell 7.3% in its trading debut after exceeding its goals for an initial public offering to raise $914 million.

Shares of the Chicago-based company rose as much as 25% from the $21 offer price but closed at $19.46 in New York trading Wednesday, giving the company a market value of about $6.1 billion. GoHealth sold 43.5 million shares on Tuesday for $21 each after earlier marketing 39.5 million of them for $18 to $20 each.

The listing, the 12th-biggest of 2020 in the U.S., adds to the IPO surge since March even as the coronavirus pandemic continues to take its toll on the economy. This year, more than $44 billion has been raised in 131 offerings, including those by so-called blank check companies, according to data compiled by Bloomberg.

GoHealth, founded in 2001, has become a provider of plans under Medicare and the Affordable Care Act, also known as Obamacare, according to its website. Its board includes former Chicago Mayor Rahm Emanuel, who was also President Barack Obama’s first chief of staff.

Last year, the company had pro forma net income of $30 million on net revenue of almost $540 million, according to its filings with the U.S. Securities and Exchange Commission.

Private Equity firm Centerbridge Partners acquired GoHealth in 2019 and will control up to 39% of the voting power, including Class B shares, according to the filings.

The offering was led by Goldman Sachs Group Inc., Bank of America Corp.and Morgan Stanley. The shares are trading on the Nasdaq Global Market under the symbol GOCO.

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