Investors cheered the public debut of Agilon Health Inc.
AGL,
+28.70%,
as shares of the California-based provider of support services for primary care physicians opened 23% above its initial public offering price, then extended gains. Agilon’s IPO priced late Wednesday at $23.00 a share, at the top of the expected range of between $20 and $23 a share, to value the company at $8.85 billion. The company offered 46.6 million shares in the IPO to raise $1.07 billion. J.P. Morgan, Goldman Sachs and BofA Securities were the lead underwriters. The stock opened at $28.25 at 12:13 p.m. Eastern, and was recently trading 28.2% above the IPO price at $29.48, to push the valuation up to $11.34 billion. Agilon recorded a net loss of $60.1 million on revenue of $1.22 billion in 2020, after a loss of $282.6 million on revenue of $794.4 million in 2019. The company went public at a time that the Renaissance IPO ETF
IPO,
+1.40%
has slipped 3.4% over the past three months, while the SPDR Health Care Select Sector ETF
XLV,
+1.86%
has gained 3.2% and the S&P 500
SPX,
+1.06%
has rallied 10.6%.
