American insurance technology (insurtech) company Ethos has launched its initial public offering (IPO) tour, with plans to reach a valuation of up to $1.3 billion.
Ethos filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission in September last year.
Together, the company and its shareholders aim to raise up to $211 million by offering approximately 10.5 million shares.
Of the total, Ethos will directly offer 5.1 million shares, and investors such as Alphabet’s GV and General Catalyst will sell approximately 5.4 million shares.
The price range for the offering has been set between $18 and $20 per share.
Upon completion, Ethos expects its Class A common stock to trade under the symbol ‘LIFE’ on the Nasdaq Global Select Market.
Ethos operates a technology platform intended to optimize various aspects of life insurance operations, such as distribution, underwriting, activation, payments and administration.
The company’s system is designed to bring together various insurance processes on a single platform and enable product development and price adjustments.
Its application process integrates real-time validation with third-party data, with the goal of reducing errors for applicants and agents.
The Ethos underwriting engine uses predictive analytics and data sources to support risk assessment and policy issuance.
The company also offers life insurance products, along with offerings related to wills and estate planning.
The funds raised are intended to strengthen the company’s capital position and support the public listing of its shares.
Some proceeds will be used to satisfy tax obligations tied to restricted stock units. The remaining capital may be allocated for general business purposes, which could include acquisitions or strategic investments if appropriate opportunities arise.
The IPO is being managed by Goldman Sachs & Co. and JP Morgan as lead bookrunners.
BofA Securities, Barclays, Citigroup and Deutsche Bank Securities are additional underwriters, with Citizens Capital Markets, William Blair and Baird as co-managers.
“US insurance technology company Ethos begins IPO tour, seeks valuation of up to $1.3 billion” was created and originally published by Life Insurance International, a brand owned by GlobalData.
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