Key facts
- Bamboo Insurance Services is targeting a valuation of up to $3.13 billion in its U.S. IPO.
- The company plans to raise up to $700 million by offering 35 million shares.
- The shares are priced between $18 and $20 each.
- Bamboo Insurance focuses on the residential property market, providing homeowners' insurance.
- The company operates as a managing general underwriter (MGU).
- Bamboo captured about 4% of California's homeowners insurance market as of last year.
Bamboo Insurance Services, a U.S. insurance provider backed by European private equity firm CVC, is aiming for a valuation of up to $3.13 billion in its initial public offering on the New York Stock Exchange under the symbol "BMB". The company revealed its target in a filing on Monday.
The Midvale, Utah-based firm is seeking to raise as much as $700 million by offering 35 million shares at a price range of $18 to $20 per share. The IPO comes amid a slower start to the fall season for initial public offerings compared to last year, with rising oil prices and inflation contributing to market volatility.
Founded in 2018 by industry veteran John Chu, Bamboo specializes in homeowners' insurance and related products for the residential property market. It operates as a managing general underwriter (MGU), distributing policies for insurance carriers that assume the claims risk. The company has seen growth, partly due to market disruptions in California caused by wildfires, where it has secured approximately 4% of the homeowners insurance market.
Last year, White Mountains Insurance sold a majority stake in Bamboo to CVC, valuing the company at $1.75 billion. J.P. Morgan, Morgan Stanley, Deutsche Bank Securities, Evercore ISI, and Wells Fargo Securities are among the underwriters for the planned offering.