Oak Street Health, a US-based primary care provider backed by health insurance firm Humana, has filed to raise up to $100m in an initial public offering.
Founded in 2012, Oak Street runs more than 50 primary care centres across eight US states that treat patients on the Medicare government insurance scheme. It made a $15.4m net loss from $197m in revenue in the first three months of this year.
The IPO proceeds will be used to pay $80m in outstanding debt, and the company said in a statement announcing the offering that it intends to expand its business into the states of Texas, New York and Mississippi by the end of 2020.
Humana has capitation contracts in place with several of Oak Street’s medical affiliates which were responsible for $96.5m of its first quarter revenue this year.
The corporate bought $50m of investment units in Oak Street in September 2018 and is one of the shareholders that own 5% or more of the company, though the IPO filing does not give details of precise stake sizes. The others are growth equity firm General Atlantic and investment firm Newlight Partners.
JP Morgan, Goldman Sachs, Morgan Stanley, William Blair and Piper Sandler are the joint book running managers for the IPO while Baird and SunTrust Robinson Humphrey are co-managers. Oak Street is set to float on the New York Stock Exchange.
