SelectQuote is looking to raise about $342 million in an initial public offering that could value the online insurance broker at more than $3 billion, the company said.

On Friday, SelectQuote filed an amended prospectus to offer about 18 million shares, priced between $17 and $19. With selling stockholders offering an additional 7 million shares, the company could raise as much as $475 million.

SelectQuote allows consumers to compare insurance policies for auto, life, and home insurance from providers such as American International Group, Prudential Financial, and Liberty Mutual.

In its filing, SelectQuote said it will use the net proceeds from the IPO to pay down its senior secured credit facilities. The facilities require that at least 25% of the IPO’s net proceeds, up to $150 million, be used to prepay a term loan that would otherwise mature in November 2024. SelectQuote said it plans to use up to $100 million to repay outstanding borrowings and to use any remaining proceeds for working capital, capital expenditures, and general corporate purposes.

About 22% of the company is owned by entities associated with Brookside Equity Partners, SelectQuote said in its filing.

The company reported 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 year before.

The announcement comes as the COVID-19 pandemic is expected to result in lower rates for many types of insurance. In late March, the company announced it was hiring more than 1,000 new employees in sales and support associate positions, saying it was working with state authorities to ensure licensing of agents could continue despite the pandemic.

SelectQuote filed as an “emerging growth company” under the JOBS Act, allowing it to take advantage of reduced public company reporting requirements.

The company said it intends to apply to list its common stock on the New York Stock Exchange under the symbol “SLQT.”

,

Leave a Reply

Your email address will not be published. Required fields are marked *