Fidelis trims price, sells more shares to reach IPO goal
Bermuda-based Fidelis Insurance Holdings’ common shares are expected to begin trading on the New York Stock Exchange on Thursday (June 29), for sale at $14 per share, a fresh update to its IPO documentation has revealed.
The company has priced its shares at $14, well below its initial target range of $16 to $19.
Fidelis will now sell 7.14 million shares compared to the 5.71 million shares it originally anticipated selling to reach its target of raising $100 million. This is approximately 7% of the company’s current equity.
In addition, 7,857,143 shares are being offered by some of the company’s existing shareholders, including founder Richard Brindle. The underwriters have been granted a 30-day option to buy up to an additional 2,250,000 common shares from the selling shareholders at the initial public offering price, less underwriting discounts and commissions.
The common shares are expected to begin trading on the New York Stock Exchange under the ticker symbol "FIHL" today and the offering is expected to close on July 3, 2023, subject to the satisfaction of customary closing conditions.
The company intends to use the net proceeds it receives from the offering to make capital contributions to its insurance operating subsidiaries, which, together with other sources of liquidity, should enable the company to take advantage of the ongoing rate hardening in the key markets in which it participates by writing more business under its planned strategy. Fidelis said it will not receive any of the proceeds from the sale of its common shares by the selling shareholders.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
