US Market: Orion180 prices IPO below target range, raises $240 million

Orion180 Insurance priced its U.S. initial public offering below its targeted range on Thursday, raising $240 million as insurers join a growing pipeline of companies seeking to tap investor demand during the fall listing season.

The Melbourne, Florida-based insurer sold 20 million shares at $12 each, below its indicated price range of $15 to $17.

The IPO comes as the U.S. equity market's fall issuance calendar begins to gain momentum despite early macroeconomic headwinds. Several insurance companies and other high-profile candidates are preparing to enter the public markets, potentially providing a boost to new-issue activity.


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CVC-backed Bamboo Insurance launched its roadshow this week, seeking to raise as much as $700 million. Hub International, backed by Hellman & Friedman, confidentially filed for an IPO in June.

Founded in 2018 by Kenneth Gregg, Orion180 provides excess and surplus lines homeowners insurance across 14 U.S. states. Its key markets include Texas, California and Florida.

Orion180 and Bamboo Insurance have highlighted relatively low loss ratios, which the companies attribute to their underwriting platforms, while both businesses have also recorded rapid growth, Reuters reported, citing Renaissance Capital research.

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However, investors have closely scrutinised insurance companies entering the public markets in recent years. Some insurers have faced pressure to demonstrate the sustainability of their underwriting performance and growth after going public.

RBC Capital Markets, UBS Investment Bank and Raymond James are serving as lead book-running managers for Orion180's offering.

The company is expected to begin trading on the Nasdaq on Friday under the ticker symbol "OIG."

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