Bright Health sets terms for IPO, could raise $1.55 billion

Bright Health, the Bloomington-based insurance company, could raise as much as $1.55 billion from its upcoming initial public offering of stock.

The company set the terms for its upcoming IPO in an amended filing with the Securities and Exchange Commission on Tuesday, saying it could sell 67.2 million shares at $23 per share.

Raising $1.55 billion in the offering would make it the largest IPO by a Minnesota company. The amount would be more than twice as much as the next largest Minnesota IPO.

The next largest IPO by a Minnesota company was the 2018 IPO of Bloomington-based Ceridian HCM Holding, which raised $531 million from the sale of 24.15 million shares. A concurrent private offering and a $100 million overallotment increased Ceridian's total proceeds to $630 million.

Bright Health has said it would use proceeds of the stock offering to repay borrowings under a credit agreement, general corporate purposes and for working capital that would help expand their business.

IPO activity has picked up nationally and in Minnesota. Two Minnesota companies completed IPOs in 2020 and three more earlier this year.

According to Renaissance Capital, which does pre-IPO research and has IPO-focused investment products, there have been 169 IPOs that have priced so far in 2021, a 225% increase over the same period in 2020.

Date Company Amount raised ($ millions)

If Bright Health, Miromatrix and CVRx all complete their IPOs before the end of this year, the six or more Minnesota IPOs would be the most in one year since eight IPOs in 1999.

Brooklyn Park-based CVRx didn't disclose the number of shares or share price in its filing. The document did indicate the company could seek to raise as much as $75 million from the offering. A medical technology company, its implantable device uses neuromodulation to stimulate the wall of the carotid artery to treat symptoms associated with systolic heart failure.

CVRx is a commercial-stage medical device company with total revenue in 2020 of $6.1 million; net loss for the year was $14.1 million. CVRx's filing said proceeds raised would be used to build a direct sales force and for research and development into related technologies.

Eden Prairie-based Miromatrix Medical filed an amended S1 document with the SEC on Wednesday updating the filing to indicate it may sell 4.6 million shares at $9 per share that could raise $41.4 million.