HCI Group Inc (HCI.N) on Wednesday postponed the preliminary public providing (IPO) of its insurance coverage unit TypTap Insurance coverage Group Inc, becoming a member of a rising record of firms rethinking their plans to go public as a consequence of risky market circumstances.
TypTap confidentially filed for an IPO in August final yr, when the pandemic had pressured the insurance coverage sector to rely closely on synthetic intelligence and large knowledge to succeed in clients.
The choice to delay TypTap’s IPO comes amid a latest sell-off in know-how shares and the poor efficiency of a number of firms that went public in 2021.
Greater than 60% of firms that went public final yr are presently buying and selling under their IPO worth, in response to knowledge from Refinitiv.
Human sources and payroll software program maker Justworks additionally postponed its U.S. IPO plans earlier on Wednesday, citing market circumstances, whereas attire chain operator Genuine Manufacturers Group Inc withdrew its U.S. itemizing plans final week. read more
Based in 2016, TypTap raised $100 million from a fund affiliated with Centerbridge Companions in February final yr. The funding, representing about 11.75% of TypTap, implied a post-money valuation of about $850 million for the corporate.
Reporting by Mehnaz Yasmin in Bengaluru; Modifying by Devika Syamnath