Orion180 Insurance prices US IPO below range, raises $240 million

Sept 17 — Orion180 Insurance on Thursday raised $240 million in its US initial public offering, ​which it priced below its targeted range, reflecting caution as investors navigate volatile market conditions.

The Melbourne, Florida-based company sold 20 ‌million shares at $12 apiece, below its indicated price range of $15 to $17.

The fall IPO season has ⁠kicked off on a wobbly ​note, with markets being whipsawed by ⁠concerns about a slowdown in AI development, the Federal Reserve's monetary ‌policy tightening cycle ‌and a surge in bond yields.

IPOs typically fare better in ⁠stable markets, when companies have greater ⁠visibility into valuations and investor demand, and can move ahead with confidence on pricing and timing.

CVC-backed Bamboo Insurance launched its roadshow this week seeking to raise as much as $700 million, while Hellman & Friedman-backed Hub International confidentially filed papers in June.

Founded in 2018 by ‌Kenneth Gregg, Orion180 provides excess and surplus lines ​homeowners insurance across 14 US states. Its key markets include Texas, California and Florida.

"Both Orion180 and Bamboo cite lower-than-average loss ratios on policies, driven by their underwriting platforms; both are also growing quickly, which should appeal to investors," said Nicholas Einhorn, vice president, research, at Renaissance Capital, a provider of IPO-focused research and ETFs.

"But ​we've seen in the last few years that investors in insurance IPOs ‌scrutinize the companies ‌closely and ⁠those companies have sometimes had to prove themselves post-IPO."

Earlier this week, nuclear services company Holtec suspended its planned IPO, citing market conditions.

RBC Capital Markets, UBS Investment Bank and Raymond James are lead book-running managers. Orion180 ‌will begin trading on ​the Nasdaq on Friday under the ‌symbol "OIG".

(Reporting by Pragyan Kalita ⁠and Nethra ​Sailesh in Bengaluru; Additional reporting by Manya Saini; Editing by Subhranshu Sahu and ​Janane Venkatraman)

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