Insurance tech firm TypTap delays U.S. IPO (updated)
12/01/2022 22:14
(Adds IPO details, company background)
Jan 12 (Reuters) - HCI Group Inc HCI.N on Wednesday
postponed the initial public offering (IPO) of its insurance
unit TypTap Insurance Group Inc, joining a growing list of
companies rethinking their plans to go public due to volatile
market conditions.
TypTap confidentially filed for an IPO in August last year,
when the pandemic had forced the insurance sector to rely
heavily on artificial intelligence and big data to reach
customers. urn:newsml:reuters.com:*:nL4N2PC43C
The decision to delay TypTap's IPO comes amid a recent
sell-off in technology shares and the poor performance of
several companies that went public in 2021.
More than 60% of companies that went public last year are
currently trading below their IPO price, according to data from
Refinitiv.
Human resources and payroll software maker Justworks also
postponed its U.S. IPO plans earlier on Wednesday, citing market
conditions, while apparel chain operator Authentic Brands Group
Inc withdrew its U.S. listing plans last week.
urn:newsml:reuters.com:*:nL4N2TS3GO urn:newsml:reuters.com:*:nL4N2TL3CB
Founded in 2016, TypTap raised $100 million from a fund
affiliated with Centerbridge Partners in February last year. The
investment, representing about 11.75% of TypTap, implied a
post-money valuation of about $850 million for the company.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika
Syamnath)
((Mehnaz.Yasmin@thomsonreuters.com;))