Alignment Healthcare, a provider of privatized Medicare benefits for seniors, has launched its initial public offering.

Alignment, which operates in California, North Carolina and Nevada with 81,500 health plan enrollees in more than 20 markets in these states, is the latest health insurer to launch an IPO this year. Oscar Health, which sells individual coverage under the Affordable Care Act and has been expanding its own Medicare Advantage business, went public earlier this year.

In Alignment’s case, the company earlier disclosed hopes of raising nearly $500 million, which would help raise capital for future expansion. Alignment Thursday night announced pricing of its IPO of 27.2 million shares of its common stock at $18 per share, “including 5,500,000 shares of common stock to be sold by certain existing stockholders.” 

Alignment on Friday will begin trading under the ticker symbol “ALHC” on the Nasdaq Global Select Market.

Health insurers need money for the latest in health information systems as well as capital to build out their medical care provider networks of doctors and hospitals.

“The Company intends to use the proceeds of the offering for working capital and general corporate purposes, including continued investments in the growth of its business, and strengthening its balance sheet by potentially repaying debt,” Alignment said in a statement Thursday night. 

Medicare Advantage plans provide extra benefits and services to seniors, such as disease management and nurse help hotlines, as well as some plans providing vision and dental care. 

But the Centers for Medicare & Medicaid Services (CMS) has changed the rules in the last three years for Medicare Advantage plans to allow them to cover more supplemental health benefits in part to better coordinate care and make sure seniors get lower cost benefits upfront before getting sick, which could cost taxpayers more in the long run.

Alignment generated nearly $1 billion in revenue last year and lost $22.9 million, according to financial statements disclosed in a filing earlier this week with the Securities and Exchange Commission.

The program has been bipartisan with Medicare Advantage plans flourishing under Presidents Obama and Trump with the new Joe Biden White House committed to expanding healthcare benefits to all Americans, including seniors.

The senior market will remain Alignment’s focus, the company said.

"From Day 1, Alignment has focused exclusively on serving seniors, a population that is rapidly growing and driving sustained, exponential growth in Medicare Advantage as a result,” Alignment founder and chief executive officer John Kao said. “Alignment's model is proven to bring high quality, low-cost care to our members, and going public enables us to accelerate our mission to put the senior first and serve more seniors nationwide. We're confident in our ability to create value for our shareholders while improving the lives of the seniors we serve."