Oscar Health’s IPO Raises $1.4 Billion

Oscar’s Share Price Falls on its First Trading Day

Digital health insurance company Oscar Health (OSCR) went public on the New York Stock Exchange yesterday. Shares of the company began trading at $36 each, but Oscar’s share price was down about 4.7% at the end of the trading day.

The pandemic has caused investors and everyday Americans to become more interested in virtual health care. This period has boosted demand for Oscar’s services, but its net losses climbed to $406.8 million in 2020 from $261.2 million in 2019. The company’s total revenue fell by 5% in 2020 compared to 2019, which may be part of the reason why investors were hesitant about the company on its first trading day.

Oscar’s Leadership

Oscar was founded in New York in 2012 by Mario Schlosser, Kevin Nazemi, and Joshua Kushner, the brother of Donald Trump’s son-in-law Jared Kushner. The company has 529,000 members in 18 states. Oscar offers individual, family, small group, and Medicare Advantage plans. It also offers members free telehealth visits and other benefits.

Oscar competes with big names in the healthcare industry including UnitedHealth (UNH) and Aetna, owned by CVS (CVS). But Oscar’s leadership believes it has an advantage over these larger rivals because of its emphasis on customer service and technology.

Looking Ahead

Several other recent telehealth and insurance IPOs have been successful recently, including Teladoc Health (TDOC), Lemonade (LMND), and American Well Corp. (AMWL)

Oscar’s first trading day was not as successful as some had expected, but many are hopeful that the company will see gains in the coming months. Because people have formed habits of seeking virtual healthcare during the pandemic, many expect the industry to continue growing.

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