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The specialty insurer has priced its initial public offering at $17 per share, above the previously estimated range of $14 to $16.
The company is offering 6,666,667 shares of Class A common stock. Underwriters have a 30-day option to purchase up to 1 million additional shares. If exercised in full, total gross proceeds could increase.
Ategrity’s shares began trading on the New York Stock Exchange on June 11 under the ticker symbol “ASIC.” The offering is being made through a prospectus filed with the Securities and Exchange Commission.
In its S-1 filing, Ategrity stated that Zimmer Financial Services Group “currently consolidates the company in the preparation of its financial statements and in order to continue to consolidate, ZFSG may be incentivized to maintain an ownership percentage in us above 80% for an indefinite period of time.”
Zimmer Financial is the company’s parent firm and provided the initial investment at Ategrity’s launch in 2018.
The insurer focuses on the excess and surplus lines market, offering coverage to small and medium-sized businesses. The company stated in its filing that proceeds from the offering will be used to increase capitalization and provide additional financial flexibility.
While Ategrity is making its debut as a public company, its classification as a “controlled company” means Zimmer Financial will continue to have significant influence over corporate decisions, including board appointments. The ownership structure will remain in place unless Zimmer’s stake drops below the 50% threshold.
What are your thoughts on Ategrity going public while retaining majority control under Zimmer Financial? Join the discussion in the comments.
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