GoHealth Shares Drop 9% on Day One Trading After $913M IPO

The online health insurance marketplace’s IPO was priced at $21 a share, higher than the expected range of $18 to $20 a share.
GoHealth Shares Drop 9% on Day One Trading After $913M IPO

The shares of GoHealth dipped more than 9% on the first day of trading on the Nasdaq Stock Market on Wednesday.

The online health insurance marketplace had sold 43.5 million shares priced at $21 each in its initial public offering earlier this week, raising $913.5 million.

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The public offering was oversubscribed, and the company had priced its shares above the previously indicated range of $18 to $20.

Underwriters for the IPO, which include Morgan Stanley, and subsidiaries of Goldman Sachs Group and Bank of America, can exercise a greenshoe option to buy another 6.5 million shares at the IPO price.

GoHealth, founded in 2001, had raised $75.4 million in three private funding rounds before going public, according to data from Crunchbase.

The Chicago-based company’s chief executive officer, Clint Jones, told TechCrunch that GoHealth plans to use the funds to increase staff, including hiring another 1,000 licensed insurance agents.

GoHealth could also be “opportunistic” regarding acquiring smaller technology companies, Jones said.

The company’s shares closed 7.3% lower at $19.46 and dropped another 1.8% in the after-hours session at $19.11.

This story originally appeared on Benzinga.

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