SelectQuote’s stock opened 31% above its reference price on Thursday.
Photo: Courtney Crow/Associated PressSelectQuote Inc.’s SLQT 35.00% shares climbed nearly 36% in its first day of trading Thursday, in what is set to be the largest U.S. initial public offering since February, as the coronavirus pandemic continues to throw companies’ plans to go public into disarray.
The insurance-policy comparison company’s stock opened 31% above its reference price at $26.20 on the New York Stock Exchange under the symbol SLQT.
A day before its trading debut, the Overland, Kan., company said it would sell 28.5 million shares in an initial public offering for a price of $20 apiece.
The company said it will have about 162.7 million shares outstanding following the offering, giving it a market capitalization of about $4.4 billion based on where shares were trading on Thursday afternoon.
The company said that about a quarter of the offering proceeds or up to $150 million would go toward a prepayment of a term loan which matures in November 2024, while another $100 million would go toward paying outstanding debts. The rest of the proceeds will be used for working capital, capital expenditures and general corporate purposes, the company said in a securities filing.
As of March 31, the company had $411 million in debt. It generated revenues of $337.5 million and $233.7 million in 2019 and 2018, respectively.
SelectQuote was founded in 1985 and provides comparative quotes for building and operating insurance exchanges for life insurance, Medicare, auto insurance and home-insurance products.
The last company to make a substantial public market debut was contract drug-development company PPD Inc. in February, according to Renaissance Capital LLC, which provides IPO research. The biotechnology firm closed its first day of trading at $30 a share, above its IPO price range of $24 to $27 apiece.
The once-hot IPO market has come to a near halt amid market volatility due to the pandemic.
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