Clover Health Goes Public Via Chamath Palihapitiya's IPOC SPAC

Chamath Palihapitiya-backed SPAC Social Capital Hedosophia Holdings Corp III IPOC announced Tuesday that it is bringing Clover Health public at an enterprise valuation of $3.7 billion.

Deal Terms: The deal includes $828 million from Social Capital Hedosophia Holdings Corp III shareholders, $400 million from a PIPE and $155 million from affiliates.

The merger is expected to close in the first quarter of 2021.

About Clover Health: Clover Health offers Medicare Advantage plans. The company’s mission is “to improve every life.”

Clover Health is backed by Sequoia Capital and Alphabet Inc's GOOG GOOGL Google Ventures.

Clover Health is growing three times faster than the industry. The company has the fastest-growing Medicare advantage plan in the U.S., according to a company presentation on the deal announced Tuesday.

Plan For Growth: Clover Health is in 34 counties today and plans to be in 108 counties next year. In its established markets, Clover Health said it has top three market share positions.

Clover Health has 57,000 members, representing 8% market share in those 34 counties. The company expects to have 73,000 members and 7% market share in 108 counties in 2021.

The company believes it can get to $25 billion in revenue by entering 40% of markets in the United States and getting to a 12% market share in addressable markets.

Clover Health is estimating revenue of$880 million in 2021 and $1.72 billion by 2023. Revenue was $457 million in 2019.

Walmart Deal: Clover Health announced a deal with Walmart WMT Tuesday to bring a Medicare Advantage plan with zero premiums to eight counties in Georgia.

Walmart has expanded into health care and recently opened health care clinics in six Georgia stores.

What’s Next: Palihapitiya has now announced deals for his three publicly traded SPACs. He has filed to bring his next three — "IPOD," "IPOE" and "IPOF" — to the market. He also has plans to keep bringing SPACs all the way through "IPOZ" to the market.

IPOC Price Action: Shares of Social Capital Hedosophia III spiked higher in after hours trading Monday. The stock was down 12.58% at $11.09 at last check during Tuesday's regular session.