Fidelis IPO priced at $14, below estimates

Bermuda-based Fidelis Insurance Holdings will raise $100 million in its initial public offering after pricing the share available for sale at $14.

Fidelis' prospectus had estimated it would sell the shares for $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. The Company will not receive any of the proceeds from the sale of its common shares by the selling shareholders.

JP Morgan, Barclays and Jefferies are acting as Joint Lead Bookrunning Managers for the offering. Keefe, Bruyette & Woods, a Stifel company, BMO Capital Markets, Citigroup and UBS Investment Bank are acting as Joint Bookrunning Managers for the offering. JMP Securities, A Citizens Company and Dowling & Partners Securities are acting as co-managers for the offering.