Oscar Health shares fell 8% on Wednesday’s IPO on the New York Stock Exchange.
The stock traded at a price of $ 36 per share. Oscar had valued his stock at $ 39 apiece, which was above his target range of $ 36-38. At $ 36 per share, the company has a market capitalization of approximately $ 7.1 billion.
Oscar uses a mix of technology, partner partnerships, and member experience to clarify health insurance prices for patients and provide doctors with more flexible payment models. Joshua Kushner, the brother of the son-in-law of former President Donald Trump, Jared Kushner, CEO Mario Schlosser and Kevin Nazemi (no longer with the company) founded the New York-based company in 2012.
The company said in its submission to go public that it has 529,000 members in 18 states. It competes against health giants like UnitedHealth and CVS Health’s Aetna, but previously told CNBC that its focus on customer service and technology can make it successful.
Oscar’s market debut comes amid strong interest in virtual health companies as Americans seek alternatives to more traditional inpatient care.
“In my view, Covid has more rapidly shifted the healthcare system to consumerization, virtual and risk-sharing with vendors and payers,” Schlosser told CNBC’s Squawk Alley ahead of the company’s first trade. “Oscar, we designed the company to be at the forefront of all three companies.”
Despite the Covid-19 pandemic that boosted the business of a number of healthcare companies, Oscar’s net loss soared from $ 261.2 million in 2019 to $ 406.8 million in 2020.
Investors include Peter Thiel’s start-up fund, the Google parent alphabet, Thrive Capital, Khosla Ventures, General Catalyst and Fidelity. Goldman Sachs, Morgan Stanley, Allen & Company, and Wells Fargo led the bid.
Oscar is a four-time CNBC Disruptor 50 company that was last ranked 12th in 2018. It is traded under the ticker OSCR.