HealthEquity, which offers an integrated platform for managing health savings accounts, announced terms for its IPO on Wednesday. The Draper, UT-based company plans to raise $100 million by offering 9.1 million shares at a price range of $10 to $12. At the midpoint of the proposed range, HealthEquity would command a fully diluted market value of $625 million.
With 8% market share, the company is one of the five largest HSA custodians, along with Optum Bank, JPMorgan & Chase (JPM), Webster Bank (WBS) and Xerox's (XRX) Benefit Wallet product. HealthEquity's CEO, Jon Kessler, was the founder and CEO of WageWorks (WAGE) from 2000 to 2007.
HealthEquity, which was founded in 2002 and booked $68 million in sales for the 12 months ended April 30, 2014, plans to list on the NASDAQ under the symbol HQY. J.P. Morgan and Wells Fargo Securities are the joint bookrunners on the deal.
