Clover Health Investments, Corp., a technology business dedicated to enhancing senior health equity, announced that an underwritten public offering of 35,000,000 shares of its Class A Common Stock has begun. Clover Health is the sole provider of the shares.
- Proposals: Clover Health proposes to award the underwriters a 30-day option to purchase up to 5,250,000 additional shares of its Class A Common Stock in connection with the offering. The offering is subject to market and other conditions, and no assurance can be given as to whether or when it will be completed, or as to the size or terms of the offering.
- Proceedings: Clover Health intends to use the net proceeds from this transaction for general corporate activities including working capital. The offering’s joint book-running managers are Citigroup and Deutsche Bank Securities. The proposed offering’s book-runners are SVB Leerink and Canaccord Genuity LLC.
- Offerings: The payer said the offering will raise funds for “working capital and general corporate purposes.”Underwriters also will have the option to purchase 5.25 million additional shares within 30 days.
- Market conditions: The offering is subject to market conditions and other conditions, the company said, adding that there is no assurance whether or when it will be completed or regarding the terms and actual size of the offering.Net proceeds from the offering are earmarked for working capital and general corporate purposes.
- Investments: Social Capital CEO Chamath Palihapitiya said that the venture capital firm will increase its investment in Clover Health Investments, according to a market observations letter he posted on his Twitter page. He cited life sciences, climate science, and alternate finance as areas “ripe for opportunity.”