Coastal insurer Slide, investors raise $408 million in US IPO

By Arasu Kannagi Basil

June 17 (Reuters) - Slide Insurance and some of its existing shareholders raised $408 million in an upsized initial public offering, the coastal specialty insurer said on Tuesday, signaling strong investor demand in a buoyant market for new listings.

The Tampa, Florida-based company, along with some backers such as HSCM Bermuda, sold 24 million shares priced at $17 apiece. It had earlier aimed to sell 20 million shares priced between $15 and $17 each.

The insurance sector has emerged as a focal point in the IPO market, which is rebounding after sweeping tariffs introduced during President Donald Trump's administration temporarily shut the window for weeks.

Recent listings in the industry include Apollo-backed Aspen Insurance AHL.N, Florida-based American Integrity Insurance AII.N and specialty insurer Ategrity ASIC.N, all of which went public in New York since May.

Founded in 2021, Slide provides family and condominium insurance policies for coastal states along the Atlantic seaboard.

The company's business is heavily concentrated in Florida, a market where some large national insurers have scaled back their presence in recent years due to frequent natural disasters.

It is led by Bruce Lucas, who previously founded and headed Florida-based Heritage Insurance HRTG.N.

While new stock market entrants have generally been well received by investors, analysts say that sustained stable trading beyond the initial listing day will be crucial for bolstering confidence in the IPO market.

"Companies that are kicking the tires on going public want to see sustained, stable trading versus just a first day pop and a subsequent drop," said Jeff Zell, senior research analyst at IPO Boutique.

Among the companies recently added to the IPO pipeline are gold and copper producer Aura Minerals ORA.TO, beef producer Kilcoy Global Foods and community bank CoastalSouth Bancshares COSO.PK.

Slide's shares are set to begin trading on the Nasdaq under the symbol "SLDE" on Wednesday.

Barclays and Morgan Stanley were the lead underwriters for the offering.