Reinsurer Looks to Raise $468 Million in an IPO
Validus Holdings Ltd, a reinsurance company based in Bermuda, has made an initial public offering in the hopes of raising as $468 million and tapping in the US public market. Validus is one of several reinsurers to stage IPOs in recent months, and has filed to sell 18 million shares with an anticipated per-share price range of $24 to $26.
The company initially anticipated raising $200 million in its IPO but raised expectations after it acquired an underwriting syndicate in the historic Lloyd's of London market.
"A successful IPO depends on the pricing. This one seems like it is priced favorably compared to its peers," said Francis Gaskins, president of independent research firm IPOdesktop.com.
Investors will find Validus' price-to-book-value appealing, Gaskins said. At 1.1, Validus is cheap versus its peers' range of 1.1 to 1.6.
Validus, along with CastlePoint Holdings Ltd, Flagstone Reinsurance Holdings and Greenlight Capital Re, were formed after the catastrophic 2005 hurricane season and the others made their U.S. market debut this year.
With a market capitalization of about $1.8 billion, Validus is the largest, followed by Flagstone, with a market value of $1.13 billion.
Published on July 23, 2007
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