Tiptree chopped down after withdrawing Fortegra IPO

Tiptree

29/04/2021 17:06

** Tiptree  TIPT.O  shares down 18.73% at $10.20; on track for
biggest daily pct loss since March 18, 2020
    ** The holding company withdrew its planned initial public
offering of up to $141.1 mln of its specialty insurance unit
Fortegra, initially filed https://www.sec.gov/Archives/edgar/data/0001841612/000162828021004731/fortegras-1.htm
 on March 15  urn:newsml:reuters.com:*:nFWN2MM1EP
    ** Tiptree cited the "prevailing market conditions" and the
high value it places on Fortegra and its growth prospects as
reasons for the withdrawal
    ** TIPT said in the filing that it "remains committed to
supporting Fortegra continue its growth trajectory and views the
specialty insurer as a core operating business." 
    ** TIPT said it had planned to use the proceeds from the
offering in conjunction with its cash on hand to execute its
growth strategy, repay $75 million in aggregate principal amount
under the Fortress Credit Facility. In addition, it said a
portion may have also been used to invest in or acquire
complementary businesses, although it had no current plans or
agreements. 
    ** TIPT shares had risen 150% YTD through Wednesday's close

 ((charles.mikolajczak@tr.com; @ChuckMik; Reuters Messaging:
charles.mikolajczak.thomsonreuters.com@reuters.net))