(Reuters) - Shares of Oscar Health fell more than 7% in their stock market debut on Wednesday, fetching a valuation of just over $7 billion for the health insurance startup backed by Google parent Alphabet Inc.
The company's shares opened at $36 on the New York Stock Exchange, below its initial public offering (IPO) price of $39 per share. Oscar Health raised $1.2 billion in its offering on Tuesday.
Oscar Health's market launch comes at a time when the COVID-19 pandemic has supercharged the telemedicine market, with more companies looking to expand their scale and offerings as healthcare moves to the virtual realm.
The New York-based company has about 529,000 users and allows patients to schedule physician visits, check lab results, make emergency virtual appointments and refill prescriptions through its mobile app or online platform.
Oscar Health was founded in 2012 by Mario Schlosser, Kevin Nazemi, who is no longer a part of the company, and Josh Kushner, brother of former U.S. President Donald Trump's adviser and son-in-law, Jared Kushner.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Devika Syamnath)
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