Health

MA focused-tech company Convey Health Solutions goes public

Medicare-Advantage-focused health tech company Convey Health Solutions is aiming to raise more than $186 million in its initial public offering today.

The company said Tuesday that it would make 13.3 million shares available at $14 per share at the start of trading Wednesday. The IPO is expected to close June 18, with Convey trading on the New York Stock Exchange under the ticker “CNVY.”

Nearly 11.7 million shares are being offered by the company, and 1.7 million are being offered by a selling shareholder. Convey said it plans to use the proceeds from the IPO to pay down debts and continue its growth trajectory.

CEO Stephen Farrell told Fierce Healthcare in an interview that the company sees specific areas where it can harness the funds from the IPO, including potential mergers and acquisitions. 

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Plus, going public “raises the profile” of Convey Health, he said. The company already partners with eight of the 10 largest Medicare Advantage insurers in some capacity, he said.

“We feel great, and the day we’re having today is the beginning of the journey, not the end of the journey,” Farrell said. “It’s been a painful six months in terms of all of the work it takes to go public, but we’re here now and we’re confident in the future.”

Farrell said the company intends to stay focused in the fast-growing Medicare Advantage market for now but that it sees significant opportunity for new products and expanded offerings. For instance, he said, it has runway to expand supplemental benefit platforms.

Farrell added that the Convey Health team is mulling an online portal large health plan clients could use to track members’ benefits and supplemental options.

“We are going to stay focused on the Medicare Advantage, market and we’re going to be disciplined because we’ve got great people, great technology and great solutions,” Farrell said.

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