Ategrity IPO to raise $113 million gross proceeds, prices above guidance

By Michael Loney

June 11 - (The Insurer) - E&S carrier Ategrity Specialty has priced its initial public offering of 6,666,667 shares of common stock at $17 per share, and is set to begin trading on the New York Stock Exchange on Wednesday.

The offering price is above the $14 to $16 range that Ategrity had provided on June 3 when launching the IPO.

The aggregate gross proceeds to Ategrity from the offering are expected to be $113.3 million before deducting underwriting discounts and commissions and estimated offering expenses.

Ategrity has granted the underwriters a 30-day option to purchase up to an additional 1 million shares of its common stock at the IPO price, less underwriting discounts and commissions.

The shares are expected to begin trading on the New York Stock Exchange on June 11 under the symbol ASIC, and the offering is expected to close on June 12.

Ategrity said that the principal purposes of this offering are to increase its capitalisation and financial flexibility and to create a public market for its common stock. It intends to use the net proceeds to grow its business and for other general corporate purposes.

JP Morgan and Barclays are acting as joint lead bookrunning managers of the offering and as representatives of the underwriters. Citigroup, TD Securities and Wells Fargo Securities are acting as joint bookrunning managers.

Ategrity is the third insurance carrier to go public in the U.S. this year, following Bermudian (re)insurer Aspen and Florida carrier American Integrity, which both floated on the New York Stock Exchange in May.

In addition, Slide launched an IPO of 20 million shares on the Nasdaq Global Select Market earlier this week. The offering is expected to be priced between $15 and $17 a share, which would raise $340 million at the top end of that range.