Health In Tech Announces Closing of Initial Public Offering

Rhea-AI Summary

Health In Tech has successfully completed its Initial Public Offering (IPO), selling 2,300,000 shares of Class A common stock at $4.00 per share, raising gross proceeds of $9,200,000. The company granted the underwriter a 30-day option to purchase an additional 345,000 shares, potentially increasing total gross proceeds to $10,580,000.

The net proceeds will be utilized for system enhancements, expansion of service offerings, sales and distribution channels, talent development and retention, working capital, and general corporate purposes. American Trust Investment Services acted as the sole book-running manager for the offering, which was conducted through a Form S-1 registration statement that became effective on December 19, 2024.

Positive

• Successfully raised $9.2M in gross proceeds through IPO
• Potential for additional $1.38M through underwriter's option
• Clear allocation strategy for funds focusing on growth and expansion

Negative

• Potential dilution for existing shareholders
• IPO price set at relatively low $4.00 per share

Insights

IPO Analyst

Health In Tech's $9.2M IPO represents a relatively small public debut in the insurtech space. The $4.00 per share pricing and modest size suggests a cautious market approach, typical of early-stage insurtech companies seeking to establish public market presence while maintaining operational flexibility.

The potential additional $1.38M from the underwriter's option could provide extra working capital, though the total raise remains modest compared to recent insurtech IPOs. The allocation strategy focusing on system enhancements and sales channel expansion indicates a growth-oriented approach, but the company will need to demonstrate efficient capital deployment given the proceeds.

For retail investors, this represents an entry point into the insurtech sector, though the small float size may lead to higher volatility. The company's AI-backed platform positions it in a growing market segment, but success will depend on executing its expansion plans with capital resources.

Technology Analyst

The emphasis on "third-party AI technology" in their platform indicates a strategic reliance on established AI solutions rather than proprietary development, which is both cost-effective and faster to market. The allocation of IPO proceeds towards system enhancements suggests a focus on technical infrastructure scaling.

The insurtech platform model, combining insurance services with AI capabilities, positions the company at the intersection of two high-growth sectors. However, the modest IPO size may limit the scope of technological advancement possible, particularly in an AI landscape where development costs can be substantial. The success of their technical strategy will largely depend on how efficiently they can leverage existing AI solutions while building distinctive platform features.

STUART, Fla., Dec. 24, 2024 /PRNewswire/ --  Health In Tech, an Insurtech platform company backed by third-party AI technology, today announced the closing of its initial public offering of 2,300,000 shares of its Class A common stock at a public offering price of $4.00 per share, for gross proceeds of $9,200,000, before deducting underwriting discounts, commissions, and estimated offering expenses.

The Company has granted the underwriter an option, exercisable within 30 days from the date of the final prospectus, to purchase an additional 345,000 shares of Class A common stock from Health In Tech at the initial public offering price, less underwriting discounts and commissions. Assuming such option is fully exercised, the Company may raise a total of approximately US$10,580,000 in gross proceeds from the Offering 

Health In Tech intends to use the net proceeds from the offering for system enhancements, expansion of service offerings, sales and distribution channels, talent development and retention, working capital, and other general corporate purposes.

American Trust Investment Services, Inc. acted as the sole book-running manager for the offering.

A registration statement on Form S-1 (File No. 333-281853) relating to the shares was filed with the Securities and Exchange Commission and became effective on December 19, 2024. This offering was made only by means of a prospectus, forming part of the effective registration statement. A copy of the prospectus relating to the offering can be obtained when available, by contacting American Trust Investment Services, Inc., 230 W. Monroe Street, Suite 300, Chicago, IL 60606, or via E-Mail at ECM@amtruinvest.com. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any 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 Health In Tech

Health in Tech ("HIT") is an Insurtech platform company backed by third-party AI technology. We offer a dynamic marketplace designed to create customized healthcare plan solutions while streamlining processes through vertical integration, process simplification, and automation. By eliminating friction and complexities, HIT enhances value propositions for employers and optimizes underwriting, sales, and service workflows for Managing General Underwriters (MGUs), insurance carriers, licensed brokers, and Third-Party Administrators (TPAs). Learn more at healthintech.com.

Forward-Looking Statements Regarding Health In Tech

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity.

Investor Contact

Investor Relations:
ir@healthintech.com

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SOURCE Health In Tech

FAQ

How much did Health In Tech (HIT) raise in its December 2024 IPO?

Health In Tech raised $9.2 million in gross proceeds through its IPO, selling 2.3 million shares at $4.00 per share.

What is the additional amount HIT could raise through the underwriter's option?

Through the underwriter's 30-day option to purchase 345,000 additional shares, HIT could raise an additional $1.38 million, bringing total potential proceeds to $10.58 million.

How will Health In Tech use the IPO proceeds?

The company plans to use the proceeds for system enhancements, expansion of service offerings, sales and distribution channels, talent development, working capital, and general corporate purposes.

When did HIT's IPO registration statement become effective?

Health In Tech's Form S-1 registration statement became effective on December 19, 2024.

Who was the underwriter for Health In Tech's IPO?

American Trust Investment Services acted as the sole book-running manager for the IPO.