Key facts
- Orion180 Insurance priced its US IPO at $12 per share, below its target range of $15 to $17.
- The company raised $240 million by selling 20 million shares.
- Orion180 Insurance's shares fell in their Nasdaq debut on Friday, opening at $11.50.
Orion180 Insurance priced its US initial public offering at $12 per share, below its target range, raising $240 million. The company's shares fell in their Nasdaq debut on Friday, opening at $11.50.
The performance of Orion180 Insurance's IPO and its debut trading may set a tone for other insurers looking to list publicly, impacting investor sentiment and the availability of capital for the sector.
Orion180 Insurance priced its US initial public offering at $12 per share, below its target range, raising $240 million. The company's shares fell in their Nasdaq debut on Friday, opening at $11.50, below the $12 IPO price and the marketed range of $15 to $17. The debut comes amid a cautious start to the fall IPO season, with concerns over AI spending, interest rates, and rising bond yields weighing on investor appetite for new listings.
Despite the market conditions, Kenneth Gregg, founder and CEO of Orion180, stated it was the right decision for the business. Demand for insurance products has been rising due to frequent and costly climate-related disasters, leading property insurers to increase premiums. Founded in 2018, Orion180 provides excess and surplus lines homeowners insurance across 14 U.S. states, including Texas, California, and Florida. Gregg indicated the company targets the entire homeowners market by offering an admitted product on an E&S basis and plans opportunistic expansion.
Orion180's listing is expected to gauge investor appetite for the sector, potentially influencing other insurers considering public offerings. CVC-backed Bamboo Insurance Services is also slated to go public, targeting a $3.24 billion valuation.
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