Alignment Healthcare Announces Closing of Initial Public Offering

Rhea-AI Summary

Alignment Healthcare announced the closing of its initial public offering on March 30, 2021, of 27,200,000 shares of common stock at $18.00 per share, raising approximately $390.6 million in gross proceeds. The offering included 5,500,000 shares sold by existing stockholders. The funds will be utilized for working capital, general corporate purposes, and to strengthen the balance sheet. Joint book-running managers include Goldman Sachs, Morgan Stanley, and J.P. Morgan. The stock is listed on Nasdaq under the symbol ALHC.

Positive

• Gross proceeds of $390.6 million from the IPO
• Intended use of funds for business growth and debt repayment

Negative

• Potential dilution from existing stockholders selling shares
• Market reaction uncertainty due to the size of offering

ORANGE, Calif., March 30, 2021 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (“Alignment Healthcare” or the “Company”) (Nasdaq: ALHC), a mission-based, tech-enabled Medicare Advantage company, today announced the closing of its initial public offering of 27,200,000 shares of its common stock at $18.00 per share, including 5,500,000 shares of common stock sold by certain existing stockholders. The gross proceeds to the Company, before deducting underwriting discounts and commissions and offering expenses, were approximately $390.6 million. The existing stockholders have granted to the underwriters a 30-day option to purchase up to an additional 4,080,000 shares of common stock at the initial public offering price, less underwriting discounts and commissions. The Company’s shares are listed on the Nasdaq Global Select Market under the symbol “ALHC.”

The Company intends to use the proceeds of the offering for working capital and general corporate purposes, including continued investments in the growth of its business, and strengthening its balance sheet by potentially repaying debt.

Goldman Sachs & Co. LLC, Morgan Stanley, J.P. Morgan, BofA Securities and William Blair are acting as joint lead book-running managers for the proposed offering. UBS Investment Bank, Piper Sandler and Raymond James are acting as joint book-running managers for the proposed offering.

A registration statement relating to this offering was declared effective by the Securities and Exchange Commission on March 25, 2021. The offering of these securities was made only by means of a prospectus, copies of which may be obtained from: Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing Prospectus-ny@ny.email.gs.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by phone: 1-866-718-1649; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204, or by emailing at prospectus-eq_fi@jpmchase.com; BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; or William Blair & Company, L.L.C., Attn: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, Telephone: (800) 621-0687, Email: prospectus@williamblair.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Alignment Healthcare
Alignment Healthcare is a consumer-centric platform delivering customized health care in the United States to seniors and those who need it most, the chronically ill and frail, through its Medicare Advantage plans. Alignment Healthcare provides partners and patients with customized care and service where they need it and when they need it, including clinical coordination, risk management and technology facilitation. Alignment Healthcare offers health plan options through Alignment Health Plan, and also partners with select health plans to help deliver better benefits at lower costs.

Media Contact	Investor Contact
Maggie Habib	Bob East
mPR, Inc. for Alignment Healthcare	ICR Westwicke for Alignment Healthcare
maggie@mpublicrelations.com	AlignmentIR@westwicke.com
(310) 916-6934	(443) 213-0500

FAQ

What was the price per share in the ALHC IPO?

The price per share in the Alignment Healthcare IPO was $18.00.

How many shares did Alignment Healthcare offer in total?

Alignment Healthcare offered a total of 27,200,000 shares in its IPO.

What are the intended uses for the IPO proceeds for ALHC?

The proceeds from the IPO will be used for working capital, general corporate purposes, and to strengthen the balance sheet.

Who were the joint book-running managers for the ALHC offering?

Goldman Sachs, Morgan Stanley, J.P. Morgan, BofA Securities, and William Blair acted as joint book-running managers for the IPO.

What are the implications of existing stockholders selling shares in the ALHC IPO?

The sale of shares by existing stockholders may lead to potential dilution of current shareholders' equity.