Evolent Health, a US-based healthcare management platform developer backed by healthcare consultancy The Advisory Board Company and health insurance provider UPMC Health Plan, has raised $195.5m in its initial public offering.
Evolent has priced the IPO at $17 a share, Reuters reported yesterday, above its $14 to $16 range, and will issue 11.5 million shares, up from 10 million.
Formed in 2011 by UPMC Health Plan, a subsidiary of healthcare company University of Pittsburgh Medical Center, and The Advisory Board, Evolent has developed software that helps healthcare providers make a transition from a fee-for-service payment model to a value-based system.
UPMC Health Plan held a 52.2% stake in Evolent prior to the offering which was set to be diluted to 38.5%, back when the company planned to issue 10 million shares. The Advisory Board’s 22.6% stake was set to be cut to 16.7%.
The company’s other notable shareholder is private equity firm TPG, which owned an 8.4% share pre-IPO. Evolent raised $101m in venture funding in a round that closed in January 2014, after securing $20m in 2011.
JP Morgan and Goldman Sachs are joint book-running managers for the offering. The other underwriters are Wells Fargo, William Blair & Company, SunTrust Robinson Humphrey and Leerink Partners.