Bamboo Insurance in Utah Targets $3.24 Billion Valuation in IPO

CVC-backed Bamboo Insurance Services is targeting a valuation of up to $3.24 billion on a fully diluted basis in its U.S. initial public offering, the company revealed in a filing on Monday.

The Midvale, Utah-based company’s selling shareholders are seeking up to $700 million by offering 35 million shares priced between $18 and $20 apiece.

Despite a strong backlog of companies preparing to go public, the fall IPO season has started more slowly than a year ago as volatility due to rising oil prices and inflation weighs on deal activity.

Within the insurance sector, however, the pipeline remains strong despite softening industry pricing and a more selective investor environment.

Melbourne, Florida-based Orion180 Insurance launched its roadshow last week seeking to raise up to $340 million.

Founded in 2018 and led by industry veteran John Chu, Bamboo focuses on the residential ⁠property market, providing homeowners’ insurance and related products.

The company operates as a managing general underwriter (MGU), meaning it underwrites and distributes policies on behalf of insurance carriers that ultimately bear the claims risk.

Its growth has been fueled in part by dislocations in California’s insurance market where recurring wildfires prompted several insurers to scale back operations, allowing Bamboo to capture about 4% of the state’s homeowners insurance market as of last year.

White Mountains Insurance, which was a major shareholder in the firm, sold a majority stake ⁠to European private equity firm CVC last year, valuing the company at $1.75 billion.

It intends to list on the New York Stock Exchange under the ⁠symbol “BMB.”

J.P. Morgan, Morgan Stanley, Deutsche Bank Securities, Evercore ISI and Wells Fargo Securities, among others, are serving as underwriters for the offering.

(Reporting by Kalita and Biswas in Bengaluru; Editing by Vijay Kishore)