Fidelis Insurance Holdings Limited has announced the closing of its initial public offering of an aggregate of 15,000,000 common shares at a price to the public of $14.00 per share, generating estimated net proceeds of $89.4 million.
According to Fidelis, this included 7,142,857 common shares sold by the Company and 7,857,143 common shares sold by certain selling shareholders.
Fidelis first announced the IPO in the middle of June, noting it intended to “take advantage of the ongoing rate hardening” in key markets.
However, reflecting challenging market conditions for any company attempting an IPO of its shares at this time, Fidelis priced it well below the marketed guidance range, as it looked to raise up to $241.5 million.
The common shares began trading on the New York Stock Exchange on June 29, 2023, under the ticker symbol “FIHL”.
The net proceeds from the offering to Fidelis after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company were approximately $89.4 million, somewhat lower than anticipated.
In a written statement, Fidelis said, “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 stated that it did not receive any of the proceeds from the sale of its common shares by the selling shareholders.
In addition, 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.
J.P. Morgan, Barclays and Jefferies acted as Joint Lead Bookrunning Managers for the offering.
Keefe, Bruyette & Woods, a Stifel company, BMO Capital Markets, Citigroup and UBS Investment Bank acted as Joint Bookrunning Managers for the offering, while JMP Securities, A Citizens Company and Dowling & Partners Securities acted as co-managers.
