Insurance comparison firm SelectQuote prices IPO above target: source
NEW YORK (Reuters) – U.S. insurance policy comparison website SelectQuote SLQT.N on Wednesday sold $570 million in stock as it priced shares in its initial public offering above its targeted range, according to a person familiar with the matter.
SelectQuote sold 28.5 million shares at $20 each in the IPO, more than the 25 million originally offered by the company and selling stockholders. The company had set a target range of between $17 and $19 per share.
Overland Park, Kansas-based SelectQuote declined to comment.
SelectQuote’s offering is the latest sign of thawing in the IPO market, which was shut to most companies when the coronavirus outbreak fueled weeks of stock market volatility in March and April. Only a handful of biotechnology and blank-check companies went ahead with IPOs during this period.
Since late February, the Cboe Volatility Index , known as Wall Street’s fear gauge, has been above the 20-point threshold that most IPO hopefuls monitor to gauge investor jitters. But it has trended downwards in recent weeks, giving some companies confidence to test the market.
SelectQuote allows consumers to compare policies for life, auto and home insurance from providers including American International Group (AIG.N), Prudential Financial Inc (PRU.N) and Liberty Mutual.
The company’s stock is set to start trading on the New York Stock Exchange on Thursday under the symbol “SLQT.” Credit Suisse and Morgan Stanley were the lead underwriters for the IPO.
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