Castlight Health bumps up its IPO price again

By Brian Dolan
Share

Castlight Mobile iOSCastlight Health, which is expected to debut on the New York Stock Exchange this coming Friday, just filed another update to its IPO filing with the SEC and now the company is looking to raise  looks to raise more than $191 million in total. The company raised the price of its IPO range to $13 to $15 a share up from its previous expected range of $9 to $11.

The company is offering 11.1 million shares in the IPO and its underwriters have the option to purchase an additional 1.65 million shares. Net proceeds from the IPO will total about $140.5 million according to the company's filing. If the company's underwriters opt to purchase additional shares, it could add another $21.7 million.

The stock will be listed on the New York Stock Exchange under the symbol “CSLT” as soon as Friday, March 14th. While Castlight recorded revenues of $1.9 million, $4.2 million and $13.0 million for the past three calendar years, it has posted respective net losses of $19.9 million, $35.0 million and $62.2 million.

Castlight Health works with health plans and other organizations to help self-insured employers offer their employees more transparent health care price and quality data in the form of online consumer tools and via mobile apps. Over the past two years Castlight has inked deals with more than 95 customers, primarily large self-insured employers, that include 24 Fortune 500 companies. At the end of 2013, Castlight had 106 signed customers, 48 of which had implemented its offering. At the end of 2012, it had 47 signed customers, and just 15 launched ones.

Among the many risks Castlight identified in its IPO filing was its limited number of customers that make up the majority of its revenue. Its deal with Wal-Mart and its affiliated health plans, for example, made up approximately 16 percent of Castlight’s total revenue last year.