Kansas insurance firm SelectQuote shares surge over 40% in US market debut

by   |  VIEW 772

Kansas insurance firm SelectQuote shares surge over 40% in US market debut

A day after the Kansas-based insurance comparison provider, SelectQuote had priced its IPO at $20 a share, above a target range between $17 to $19 per share, raising a stark sum of $360 million, shares’ prices of SelectQuote had witnessed a continental dive of 40 per cent at its public market debut on Thursday, proffering the company a market valuation of more than $4 billion.

As a matter of fact, at its Wednesday, IPO, SelectQuote, the Kansas-based insurance company that enables its clients to compare between a swathe of insurance policies ranging from life to auto to home insurances from leading insurers likes of American International Corp., Liberty Mutual and Prudential Financial Inc., had sold off 18 million shares as slated with existing stakeholders selling 10.5 million shares, raising a sum of $360 million as beforementioned.

On top of that, followed by Thursday’s broad-based space-dive of SelectQuote shares, several analysts were quoted saying that the unprecedented upsurge of SelectQuote stocks was prompted by a meltdown in the IPO market over the past three months which in effect had fuelled up investors’ appetite for a rare IPO from a company that had already been profitable.

In tandem, the pandemic-hit first quarter of the year alongside April had witnessed only a hatful of IPOs, mostly from biotech firms alongside blank-check companies seeking to raise fresh financing, which had also spurred up investors’ optimism for the SelectQuote stocks, suggested analysts.

SelectQuote remains bullish on-demand after shares surge over 40% in US market debut

Meanwhile, following Thursday’s (May 19th) monumental upswing of SelectQuote stocks, expressing an out-and-out optimism on SelectQuote shares, the company Chief Executive Timothy Danker was quoted saying in an interview with a press agency that the company’s core product remained bullish on-demand as the pandemic outbreak was drawing in more people on to its website to purchase insurances online, adding “Consumers don’t want folks in their house selling insurance, they’d rather do research online and connect telephonically and we view that as a trend moving forward.