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4 July 2023News

Fidelis nets $90m from IPO

Fidelis Insurance Holdings says it will use net proceeds of almost $90 million from its initial public offering to increase its insurance subsidiaries’ capacity to take advantage of the current hard market.

Fidelis, which sold 7.1 million of its own shares at $14 each, closed its IPO yesterday. The shares trade on the New York Stock Exchange under the ticker FIHL. Fidelis shareholders sold a further 7.8 million shares in the IPO, but the company did not receive any benefit from these sales.

Fidelis said the net proceeds from the offering to the company, after deducting underwriting discounts and commissions and estimated offering expenses payable by the company, were approximately $89,400,000.

It 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.”

The shares closed at $13.81 yesterday. US stock markets are closed today for US Independence Day.

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. JMP Securities, A Citizens Company and Dowling & Partners Securities acted as co-managers for the offering.