(Bloomberg) — Oscar Health Inc., the health insurance startup co-founded by Josh Kushner, fell in its trading debut after raising $1.4 billion in its upsized U.S. initial public offering.
The company’s shares fell as much as 10% in New York after opening at $36, below their IPO price of $39 apiece. The shares were trading at $35.74 at 12:42 p.m., giving the company a market capitalization of about $7.3 billion based on the outstanding shares.
Oscar Health and a selling shareholder sold 37 million shares on Tuesday, according to a statement. It had marketed 31 million shares for $36 to $38 a share, a range that it had raised from $32 to $34.
Kushner, managing director of the venture firm Thrive Capital, is the brother of Jared Kushner, son-in-law and onetime senior adviser to former U.S. President Donald Trump.
Kushner and Thrive Capital will control the majority of the voting power, according to the filings. The New York-based company’s Class A shares are entitled to one vote while Class B shares will have 20.
“We have been growing a lot in the last couple of years,” said Mario Schlosser, chief executive officer and co-founder of Oscar Health. “The thesis works, the company works and we want to show it to the world.”
Though with cash in hand and despite being in a crowded sector, there’s no plans for Oscar Health to make acquisitions at the moment, Schlosser said. “We have a ton of growth ahead of us just organically,” he said.
Google’s parent Alphabet Inc., Fidelity Management, Founders Fund, General Catalyst and Khosla Ventures are also among the company’s shareholders.
Oscar Health trades on the New York Stock Exchange under the symbol OSCR. Goldman Sachs Group Inc., Morgan Stanley, Allen & Co. and Wells Fargo & Co. led the offering.
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