CHICAGO — GoHealth, an online health insurance marketplace, raised $914 million through an initial public offering Tuesday, but shares of the Chicago-based company fell 7.3% on Wednesday’s first day of trading.
The company will use the funds raised through the IPO to expand, said Brandon Cruz, co-founder and chief strategy officer.
The company’s IPO of 4.6 million shares was priced at $21 a share, higher than the expected range of $18 to $20 a share. Shares closed at $19.46 a share Wednesday. GoHealth is trading under the ticker GOCO.
Founded in 2001, GoHealth uses data to identify potential customers and help them select the right health insurance plan. Going pubic will help raise GoHealth’s name recognition along with its expansion efforts, Cruz said.
The company has shifted its focus to Medicare products during the last four years, in an effort to capitalize on an aging population. In paperwork filed with regulators last month for its IPO, the company said Medicare enrollment is expected to grow to about 77 million individuals by 2028, up from about 61 million last year.
“This gives us capital to continue to accelerate the growth in the Medicare space,” he said. “There’s a really big opportunity to connect people with the right plans.”
GoHealth employs about 2,200 people around the country, including about 800 in Chicago, Cruz said. The company plans to hire another 1,000 people this year.
Recently, GoHealth started offering more help to people after they sign up for health insurance, and plans to double down on those offerings, Cruz said. That includes connecting people with the right telehealth providers, making sure they are going to the right pharmacy and have the best plan to cover prescriptions.
Last year, private equity firm Centerbridge Partners acquired a majority stake of GoHealth. The company is valued at $6 billion, according to research firm Renaissance Capital.
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