agilon health, which provides a senior-focused value-based care platform for primary care physicians, announced terms for its IPO on Wednesday.
The Long Beach, CA-based company plans to raise $1.0 billion by offering 46.6 million shares at a price range of $20 to $23. Insiders Morgan Stanley Investment Management and Capital Group, and new investors Wellington Management, Fidelity, and Rock Springs intend to purchase up to $500 million worth of shares in the offering. At the midpoint of the proposed range, agilon health would command a fully diluted market value of $9.0 billion.
Capitalizing on emerging value-based care opportunities, agilon's model provides the necessary capabilities, capital, and business model for existing physician groups to create a Medicare-centric, globally capitated line of business. Since establishing its inaugural partnership with an anchor physician group in 2017, the company now has 16 anchor physician groups across 17 geographies.
agilon health was founded in 2016 and booked $1.2 billion in revenue for the 12 months ended December 31, 2020. It plans to list on the NYSE under the symbol AGL. J.P. Morgan, Goldman Sachs, BofA Securities, Deutsche Bank and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of April 12, 2021.
