Agilon Health, which is listing next week, could raise as much as $1 billion with its initial public offering. Agilon said Wednesday that it was offering 46.6 million shares at $20 to $23 each. This means the Long Beach, Calif., company could collect $1.07 billion at the high end of its range. Its shares are set to trade on the New York Stock Exchange under the ticker AGL.
J. P. Morgan, Goldman Sachs, and Bank of America are the underwriters on the deal. (ticker: ALHC), which provides data and technology as well as healthcare services to seniors through its Medicare Advantage plans, went public in late March. Alignment’s stock fell below its $18 IPO price during its first day of trading, closing down 3.8%, at $17.31. In contrast,
Alignment Healthcare Signify Health
Agilon is the latest healthcare services company to tap the public equity markets. Agilon is scheduled to price its deal on Wednesday, April 14 and trade the next day, people familiar with the situation said.
Founded in 2016, Agilon says it is looking to reimagine healthcare. The company aims to provide a platform that lets physicians focus on offering value-based care for seniors instead of the volume-based, fee-for-service reimbursement model that is common right now. Agilon is in 17 communities in eight states, serving about 210,000 patients enrolled in the Medicare Advantage program. (SGFY), which also offers healthcare services to patients on Medicare Advantage, rose nearly 32% in February.
Agilon is not profitable. Its losses narrowed to $60 million in 2020 from $282.6 million in losses during 2019, its prospectus said. Revenue rose 53%, to $1.2 billion in 2020. It has 552 employees. Agilon is backed by private equity. Clayton, Dubilier & Rice formed the company in 2016, when it merged the Primary Provider Management Co. with Cyber-Pro Systems. CD&R will own 57.4% of Agilon after the IPO, while With 384,836,394 shares outstanding, Agilon could have a near $9 billion market cap.
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