Insurance policy comparison website SelectQuote raises $570 million in IPO
Illustration: Aïda Amer/Axios
SelectQuote, an Overland Park, Kansas-based insurance policy comparison site backed by Brookside Equity Partners, raised $570 million in its IPO.
Why it matters: This is the largest U.S. IPO since early February, and just one of a small handful of non-biotech or non-SPAC issuers to price at all.
- SelectQuote will trade on the NYSE (SLQT), while Credit Suisse and Morgan Stanley were lead underwriters. It reports $60 million of profit on $263 million in revenue for the nine months ending March 31, 2020.
- It priced 28.5 million shares at $20, above its $17-$19 range, for an initial market cap of $3.25 billion.
The bottom line: "Since late February, the Cboe Volatility Index, known as Wall Street’s fear gauge, has been above the 20-point threshold that most IPO hopefuls monitor to gauge investor jitters. But it has trended downwards in recent weeks, giving some companies confidence to test the market," writes Reuters.