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SelectQuote is looking to raise about 2 million in an IPO that could value the owner of the insurance policy comparison website at more than billion. The company will offer about 18 million shares at between and per share.United States insurance agency SelectQuote Inc is looking to hold an initial public offering (IPO) that could value this company at more than billion. The company plans to get 2 million.On Friday, SelectQuote is getting ready for its IPO. It filed an enhanced prospectus to offer about 18 million shares, priced between and .With selling stockholders offering an extra seven million shares, the company could raise even more than previously expected 5 million.SelectQuote Enables Users to Compare Insurance PoliciesSelectQuote enables its consumers
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SelectQuote is looking to raise about $342 million in an IPO that could value the owner of the insurance policy comparison website at more than $3 billion. The company will offer about 18 million shares at between $17 and $19 per share.
United States insurance agency SelectQuote Inc is looking to hold an initial public offering (IPO) that could value this company at more than $3 billion. The company plans to get $342 million.
On Friday, SelectQuote is getting ready for its IPO. It filed an enhanced prospectus to offer about 18 million shares, priced between $17 and $19.
With selling stockholders offering an extra seven million shares, the company could raise even more than previously expected $475 million.
SelectQuote Enables Users to Compare Insurance Policies
SelectQuote enables its consumers to compare different insurance policies for auto, life, and home insurance from numerous providers as are, for example, American International Group, Prudential Financial, and Liberty Mutual.
In its filing, the company explained it is planning to use the net proceeds from the IPO for paying down its senior secured credit facilities. The facilities demand that around 25% of the IPO’s net proceeds, up to $150 million, is used to disburse a term loan that would in another case mature only in November 2024. SelectQuote said it intends to use approximately $100 million to compensate dominant lendings and to use any resting proceeds for working capital, capital costs, and general corporate purposes.
SelectQuote said in its filing that around 22% of the company is under the ownership of the entities in connection with Brookside Equity Partners. The company also reported its net income of $72.6 million for 2019, up more than 100% from the year before. Its revenue was $337.5 million in 2019, up 44% from the previous year.
Huge Sales Rise Recorded
The company has been recording a big rise in sales that can be visible in the top-line numbers. In the latest S-1 registration statement, the company has given out data for the nine months ended 31 March 2020 and the calculated run rate for the last 12 months is pretty much impressive. During the last three years, the company has doubled its revenues.
Still, its good performance isn’t just limited to top-line as adjusted EBITDA has also become a lot better. Even though the adjusted EBITDA margin plunged below 30% in the trailing 12 months, 28.7% is still pretty OK range and leaves enough ways to improve.
The announcement came as the coronavirus outbreak is expected to impact lower rates for many types of insurance. In late March, the company announced it will employ more than 1,000 new employees in the sales sector and support associate positions. The company also added it was cooperating with government authorities in order to make sure that the licensing of agents could continue despite the COVID-19 outbreak.
SelectQuote Believes in IPO Success: Potential Lays in Online Sales of Insurance
Let’s also mention that this is pretty much being a scalable business model and a rising number of customers who decided to use online channels in order to make purchasing decisions for their insurance needs, meaning there is a long road to be traveled by the company.
SelectQuote predicts its market for its three business lines stands around $180 billion. The truth is, the huge potential is laid in online sales of insurance. SelectQuote filed as an “emerging growth company” under the JOBS Act, and that enables it to take dominance in reduced public company reporting requirements.
The company said it plans to apply to list its common stock on the New York Stock Exchange (NYSE) under the symbol “SLQT.”
On Coinspeaker, you can read about other IPO news.
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