IPO Outlook: Oscar Health And InnovAge Hit Markets This Week

IPO Outlook: Oscar Health And InnovAge Hit Markets This Week

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Only two traditional IPO listings are expected to price in during the week of March 1. Here is a look at what investors should expect from the IPO offerings.

Oscar Health

Health insurance company Oscar Health will be the biggest IPO of the week. The health insurance technology startup has 529,000 members and collects $2.3 billion in direct policy premiums. The company reports 47% of its subscribers are active monthly users and 89% of subscribers interact with the company’s digital or care team channels. It was co-founded by Josh Kushner, brother of Jared Kushner, son-in-law of former U.S. President Donald Trump.

Oscar Health's membership grew from 15,000 members in one state in 2017 to 529,000 members in 18 states in 2020. Most of the company's members were in its three largest states as of the end of 2020: Texas (93,164), California (103,834), and Florida (115,171). Six states were added in 2020. The company has grown membership at a compounded annual growth rate of 59% from 2017 to 2020.

The company plans to add more members in its existing states, launch products in new states, and develop new partnerships and potential acquisitions. Revenue was $462.8 million in fiscal 2020 for Oscar Health. Oscar Health is planning to offer 31 million shares at a price point of $32 to $34.

InnovAge Holding Corp

Targeting the healthcare delivery market for seniors, InnovAge Holdings Corp believes it has a total addressable market size of $200 billion. The company targets 2.2 million seniors who are eligible for Medicare and Medicaid, and also meet nursing home eligibility criteria for PACE (Program of All-Inclusive Care for the Elderly).

InnovAge has a network of 16 centers in five states. As of June 2020, the company had over 6,400 participants. Revenue for InnovAge was $567.2 million in the fiscal year ending June, up 22% year-over-year. Six-month revenue from July to December 2020 was up 15% year-over-year to $309.9 million.

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