IPO season is hot and investors are bothered
Investors appear excited to buy shares in impending public companies Oscar Health and Coupang. TechCrunch covered both extensively during their ramp toward the public markets, and more recently regarding their IPO march. And now, with a combined valuation well above $50 billion, both public offerings should make a splash.
And in good news for their respective investors, recent pricing points to an IPO market that remains enthusiastic about new listings, despite some recent chop among public technology equities.
The valuation news from Coupang and Oscar Health bodes well for other impending offerings, including a host of SPAC-led flotations and the coming direct-listing of cryptocurrency giant Coinbase.
This morning, let’s collect pricing news on both Coupang and Oscar Health, eat some modest crow in the case of the latter and prep ourselves for the next two unicorn public offerings.
These companies will soon convert tens of billions of dollars of illiquid private shares into public currency. As such, their offerings may reveal investors’ sentiments regarding e-commerce and insurance companies backed by venture capital.
Oscar Health and Coupang’s IPO pricing
As TechCrunch reported this morning, South Korean e-commerce player Coupang could be worth as much as $51 billion in its IPO if its first debut price range of $27 to $30 per share holds up; the price range matches earlier expectations for the company, which recorded revenues of $11.97 billion in 2020, up more than 90 percent from its year-ago results.
Oscar Health’s new IPO price range is even more interesting than Coupang’s first. The insurance startup’s first IPO pricing interval of $32 to $34 per share valued the company at a midpoint, full-diluted price of around $7.7 billion. Its range is now $36 to $38 per share, more than modestly higher than its prior target price range.