SelectQuote is hunting to increase about $342 million in an initial public offering that could price the on-line insurance policy broker at additional than $3 billion, the enterprise stated.
On Friday, SelectQuote filed an amended prospectus to provide about eighteen million shares, priced concerning $17 and $19. With providing stockholders offering an further 7 million shares, the enterprise could increase as a lot as $475 million.
SelectQuote will allow people to review insurance policy guidelines for vehicle, everyday living, and property insurance policy from suppliers such as American Intercontinental Team, Prudential Economical, and Liberty Mutual.
In its filing, SelectQuote stated it will use the net proceeds from the IPO to pay out down its senior secured credit rating facilities. The facilities have to have that at least 25% of the IPO’s net proceeds, up to $one hundred fifty million, be employed to prepay a time period financial loan that would in any other case mature in November 2024. SelectQuote stated it plans to use up to $a hundred million to repay outstanding borrowings and to use any remaining proceeds for working funds, funds expenses, and common company needs.
About 22% of the enterprise is owned by entities involved with Brookside Fairness Companions, SelectQuote stated in its filing.
The enterprise described net revenue of $72.6 million for 2019, up additional than a hundred% from the year just before. Its revenue was $337.five million in 2019, up 44% from the year just before.
The announcement will come as the COVID-19 pandemic is expected to end result in reduced fees for several types of insurance policy. In late March, the enterprise declared it was selecting additional than one,000 new personnel in product sales and support affiliate positions, stating it was working with state authorities to assure licensing of brokers could continue regardless of the pandemic.
SelectQuote filed as an “emerging progress company” beneath the Work opportunities Act, permitting it to choose advantage of lowered public enterprise reporting prerequisites.
The enterprise stated it intends to utilize to checklist its typical stock on the New York Inventory Exchange beneath the symbol “SLQT.”