Online insurance broker SelectQuote has set the terms for an initial public offering, even as the IPO market has stalled amid the stock-market turmoil and economic weakness stemming from the coronavirus pandemic.
SelectQuote, expected to list on the NYSE with the ticker symbol SLQT, wants to bring in $475 million.
It plans to offer 25 million shares at $17 to $19 each. That would put shares outstanding at 162.7 million after the IPO, which in turn would value the company at $2.77 billion to $3.09 billion.
For fiscal 2019 ended June 30, the Overland Park, Kan., company reported net income more than doubled to $72.6 million from $34.9 million a year earlier. Revenue reached $337.5 million, up 44% from $233.7 million.
Some 32 IPOs have priced in 2020 through May 11, down 38% from the year-earlier period, according to Renaissance Capital. Of the 32, 22 occurred in January and February, before the pandemic raged in the U.S.
But don’t expect the IPO pace to pick up much for the next few months, Rick Kline, co-chair of capital markets for the Goodwin law firm, told TheStreet.com.
“There’s mostly two buckets: One is companies that have first-order problems right now. Hospitality, travel-related, event-driven: Those companies are really impacted by the pandemic,” he said.
“The second bucket, let's say enterprise software companies, aren’t as directly impacted but worry about second-order effects where their customers may be impacted in the second quarter or beyond.”