SelectQuote Aims to Raise $475M in IPO - Pricing $17 to $19 a Share

SelectQuote wants to raise $475 million in its IPO, offering 25 million shares at $17 to $19 each.
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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.

To be sure, the Renaissance IPO ETF  (IPO) - Get Report has dipped only 4.3% over the past three months, compared with a 16% drop for the S&P 500.

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.”