On October 19, 2021 – Ensemble Health Partners, a company providing a Revenue Cycle Management (RCM) platform for healthcare, set terms for its initial public offering. The company is about to raise $649M, at a valuation of $1.2B.
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- Detailed instructions how to participate in Ensemble (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Goldman Sachs, BofA Securities, Deutsche Bank and Guggenheim in Ensemble case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Ensemble IPO
Ensemble Health Partners Inc. is a developer of a platform for healthcare organizations that can manage the revenue cycle (RCM). This process tracks cash receipts from patients from their first appointment to the final payment.
Ensemble Health Partners' solutions are cloud-based and used by hospitals and private physician groups. The company generates most of its revenue through long-term contracts - they account for 90% of the total. In addition, 70% of the contracts do not expire until 2027, after which many of them are automatically renewed.
Ensemble Health Partners itself estimates that RCM spending in healthcare is around $50bn a year. According to Global Market Insights, the market for digital health solutions will continue to grow strongly in the coming years. In 2020, it topped $141.8 billion, and it is expected to reach over $416 billion by 2027. This growth has been driven by the fact that private and public healthcare institutions have begun actively digitizing internal processes. The COVID-19 pandemic had no small part in this, forcing healthcare centres to optimize their operations in a highly stressful environment.
How to Buy Ensemble Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Ensemble IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Ensemble shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Ensemble IPO before public trading:
Below we share the instruction how to participate in the approaching Ensemble IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Ensemble is already listed there.
🎁 A special offer is available for this IPO.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Ensemble and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Ensemble IPO date?
Ensemble's IPO date is October 26, 2021
What is Ensemble IPO price range?
Ensemble IPO price range is $19 - $22 per share.
How to Invest in Ensemble after the IPO date (opening price)?
In what currency Ensemble IPO and post-IPO shares will be traded?
The Ensemble IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Ensemble (stock symbol)
The stock ticker for Ensemble will be ENSB
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