GoHealth stumbles on debut

摘要

Healthcare insurance platform COHEALTH struggled on debut last Wednesday despite upsizing its IPO and pricing the deal above the marketing range for proceeds of US$913.5m. The outcome exposed the downside risks in an IPO market driven more by momentum than fundamentals. A syndicate led by Goldman Sachs, Bank of America and Morgan Stanley late on Tuesday priced the sale of 43.5m shares, up from 39.5m at launch, at US$21.00, above the US$18-$20 range. Though the offering was notionally all-primary, GoHealth is using about US$600m of the proceeds to purchase equity interests from existing shareholders, including sponsor Centerbridge Partners. The decision to upsize and price above range was driven by extraordinarily strong demand, one banker said.