Hamilton raises $80m from IPO to capitalise on hard market
Hamilton Insurance Group earned net proceeds of $80.6 million from its initial public offering that it plans to use to boost capacity to capitalise on the “favourable market conditions”.
Hamilton, whose IP closed today after initially floating on Friday, said it had sold 6.25 million shares while the founding shareholder sold 8.75 million shares at $15 a share.
The flotation valued the company at $1.68 billion. Hamilton had hoped to sell the shares for between $16 and $18.
The company, headed by chairman David Brown, intends to use the net proceeds it receives from the offering to make capital contributions to its insurance and reinsurance operating subsidiaries for use by its three operating platforms.
“This should enable the Company to take advantage of ongoing favourable market conditions in the markets in which the Company operates by writing more business pursuant to its strategy,” Hamilton said.
In addition, the underwriters have been granted a 30-day option to buy up to an additional 2,250,000 Class B common shares from the selling shareholders at the initial public offering price, less discounts and commissions.
Hamilton’s shares were trading at $15.25 at the close of trading yesterday.
Hamilton’s IPO marks the latest public offering by a Bermuda-based re/insurer. Fidelis Insurance Holdings floated on the New York Stock Exchange in June at $14 a share. It is currently trading at $13.24. Everest Group raised $1.3 billion through a secondary offering in July when it priced the shares at $360. The shares are now trading at $392.18.
In the Hamilton offering, Barclays and Morgan Stanley acted as Joint Lead Bookrunning Managers for the offering. Citigroup and Wells Fargo Securities acted as Joint Bookrunning Managers for the offering. BMO Capital Markets, Dowling & Partners Securities LLC, JMP Securities, A Citizens Company, Keefe, Bruyette & Woods, A Stifel Company, and Commerzbank acted as co-managers for the offering.
Insurance Advisory Partners served as financial advisor to the Company for the offering.
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