Neptune Insurance raises $368 million in US IPO

Reuters
10/01
UPDATE 1-Neptune Insurance raises $368 million in US IPO

Adds details throughout

Sept 30 (Reuters) - Neptune Insurance priced its New York initial public offering at the top end of its marketed range, raising $368 million, the flood insurance provider said on Tuesday, adding to a string of listings as investors flock to new offerings.

The St. Petersburg, Florida-based flood insurer and some of its existing shareholders sold 18.4 million shares at $20 apiece, compared with its target range of $18 to $20 each. The IPO valued it at $2.76 billion.

Co-founder Jim Albert, along with private equity firms Bregal Sagemount and FTV Capital, were among the selling shareholders.

U.S. IPO activity has picked up after a slowdown earlier this year, with companies moving quickly to tap investor appetite as concerns over President Donald Trump's trade policy ease.

Several insurance firms tapped public markets this year, including Aspen Insurance AHL.N, Slide Insurance SLDE.O and Accelerant ARX.N, all of which got strong receptions on their debuts.

Neptune, launched in 2018, sells residential and commercial flood insurance policies on behalf of carrier partners throughout the United States. It competes against the National Flood Insurance Program, a U.S. government-run entity and the largest provider of flood insurance in the country.

Demand for flood protection has been rising as climate change drives more frequent and severe storms.

Cornerstone investors T. Rowe Price Investment Management and AllianceBernstein indicated interest in buying up to $75 million of shares.

Morgan Stanley, J.P. Morgan and BofA Securities are among the underwriters for the offering. Neptune will list its stock on the NYSE under the "NP" symbol, with trading expected to begin on October 1.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Alan Barona)

((Prakhar.srivastava2@thomsonreuters.com))

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