Hamilton Insurance Group IPO prices at $15, below expected range

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Hamilton Insurance Group IPO prices at $15, below expected range

In a move that may reflect market caution, Hamilton Insurance Group has priced its initial public offering (IPO) at $15 per share, which is below the anticipated range of $16 to $18. The Bermuda-based insurer successfully raised $225 million through the sale of 15 million Class B common shares. The offering included 6.25 million shares from Hamilton and 8.75 million from existing shareholders.

Trading on the New York Stock Exchange (NYSE) under the ticker "HG" began today, with underwriters given a 30-day option to buy an additional 2.25 million shares at the IPO price minus their discounts and commissions. The net proceeds amounting to $93.75 million will be directed towards bolstering the company's insurance and reinsurance subsidiaries, enhancing their capacity to grow business volumes amid favorable market conditions.

Barclays (LON: BARC ) and Morgan Stanley acted as Joint Lead Bookrunning Managers for the transaction, while Citigroup and Wells Fargo (NYSE: WFC ) Securities were appointed as Joint Bookrunning Managers. Insurance Advisory Partners LLC advised Hamilton on the financial aspects of the IPO, with several co-managers including BMO Capital Markets, Dowling & Partners Securities LLC, JMP Securities, Keefe, Bruyette & Woods, and Commerzbank (ETR: CBKG ) also playing roles in the process.

The IPO's closing is anticipated by Tuesday, subject to standard conditions. Hamilton plans to use the fresh capital to implement its strategic initiatives across its operational platforms. This move comes after earlier expectations in November that the shares would be offered at a higher price point, which could have raised between $242 million and $272 million for the insurer.

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