- General
- October 6, 2020
- 4 minutes read
Clover Health Seals Reverse Listing
Vivek Garipalli, Co-Founder and CEO, Clover Health. Photo credit: Clover Health Clover Health, a well-funded health insurance upstart, has reached a deal…
 |
| Vivek Garipalli, Co-Founder and CEO, Clover Health. Photo credit: Clover Health |
Clover Health, a well-funded health insurance upstart, has reached a deal to go public by merging with blank-check firm Social Capital Hedosophia Holdings Corp. III. The merger is expected to provide up to $1.2 billion in cash for both Clover, the company, and its shareholders, broken down into $728 million for Clover itself and $500 million to be received by current Clover shareholders. The targeted amount sums up from $828 million in funding already secured by Social Capital Hedosophia Holdings Corp. III from its public debut and an additional $400 million to be raised from investors including Social Capital’s own CEO Chamath Palihapitiya, financial services giant Fidelity, and hedge fund Perceptive Advisors.
Clover Health is on its way to a public listing seven years after its founding. The San Francisco-based company is a health insurance provider that offers insurance packages largely to rural and underserved areas in the US. As a private company, Clover Health has raised over $900 million in funding from a slew of investors, among them notable names like Greenoaks Capital, Alphabet’s GV, Sequoia Capital, and First Round Capital.
Clover Health is a fast-growing upstart in a very large healthcare insurance market in the US. The company currently serves over 57,000 members across 7 states in the US. As it looks to go public by the way of a reverse merger, some of its current shareholders are apparently seeking to cash out to the tune of $500 million on the public markets. Clover Health’s reverse merger is expected to give the company an initial valuation of $3.7 billion.
