Progyny, which manages fertility benefits for large employers, has hired banks for an IPO

Key Points
  • Progyny is a company that helps employees of large companies navigate their fertility benefits. 
  • It has hired J.P. Morgan as its lead bank ahead of its initial public offering, sources tell CNBC. 
  • The company's largest customers include Facebook and Microsoft. 
George Kavallines | CNBC

Progyny, a company that manages fertility benefits on behalf of large employers, has hired banks and is planning to file to go public in the coming days, according to people familiar with the plans.

The company has tapped J.P. Morgan as its lead bank and could file its S-1 prospectus as soon as Friday, although the timing could slip, according to the people, who declined to be named because the plans are confidential.

The New York-based company, which started in its current form in 2015, is one of a series of health-technology start-ups that sells health and technology services to large employers. The company competes in women's health space, alongside venture-backed start-ups like Carrot Fertility, which is especially important to employers as a tool for recruitment and retention.

Specifically, Progyny helps employees get matched with resources when they are faced with fertility issues and helps them manage the cost. The company also provides coaches to patients to help them understand the risks and benefits of various procedures, including in-vitro fertilization (IVF) and egg freezing.

Facebook and Microsoft are attracting top talent thanks to this hot benefit

Its largest customers include Facebook and Microsoft, which use Progyny to help cover the cost of expensive fertility treatments for their workers. It's raised nearly $100 million in venture capital from Merck Ventures and Kleiner Perkins, among others, according to Crunchbase, and made the CNBC Disruptor List for 2019.

Progyny's move to go public follows Livongo Health, a company in the diabetes space that also sells its service to large employers. Livongo has dropped 36% from its July IPO price of $28 per share, including a fall of nearly 6% on Thursday.

The filing comes as investor skepticism is high about IPOs. WeWork withdrew its planned offering this month after investors balked at its sky-high valuation and massive losses, leading to the ouster of cofounder Adam Neumann from the CEO role. On Thursday, Peloton shares tumbled 11% on its public debut, and entertainment company Endeavor withdrew its IPO which was planned for Friday.

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