Flood of IPOs Hits the Market: Assurant Stands Out

Strategic Insights -

This week's Initial Public Offering (IPO) lineup has drawn attention, with nearly a dozen companies set to make their trading debuts. Amidst the flurry of activity, Assurant Inc., a unit of Netherlands-based Fortis Insurance NV, is poised to make a significant splash. The company's $2 billion IPO is expected to begin trading on the New York Stock Exchange on February 5, offering 80 million shares at a price range of $20 to $22 each. Assurant has reported net income of $263 million for the nine months ended September 30, 2003, and boasts a range of insurance products through its four decentralized operating business segments.

Key Takeaways:

  • The IPO market is experiencing a surge, with nearly a dozen companies set to debut this week, including Assurant Inc., GTx Inc., and Renovis Inc.
  • Assurant's $2 billion IPO is expected to begin trading on February 5, offering 80 million shares at a price range of $20 to $22 each.
  • Assurant has reported net income of $263 million for the nine months ended September 30, 2003, and boasts a range of insurance products through its four decentralized operating business segments.
  • GTx Inc. is offering 5.4 million shares at a price range of $13 to $15 each, with proceeds earmarked for clinical trials for its products Acapodene and Andarine.
  • Renovis Inc. is developing a number of drugs, including Cerovive, which is designed to protect brain cells from damage caused by acute ischemic strokes.
  • TRW Automotive Holdings Corp. plans an $805 million offering, with the aid of CSFB, Goldman Sachs, J.P. Morgan, and several other underwriters.
  • Asset Acceptance Capital Corp. sells 7 million shares at a $13 to $15 range, providing a 40% discount to its peers on a price-to-book basis.

Statistics:

  • The Assurant IPO is valued at $2 billion, with 80 million shares offered at a price range of $20 to $22 each.
  • GTx Inc. is expected to raise $86.25 million in its IPO, with 5.4 million shares offered at a price range of $13 to $15 each.
  • Renovis Inc. is developing multiple products, including Cerovive, which could protect brain cells from damage caused by acute ischemic strokes.
  • TRW Automotive Holdings Corp. plans an $805 million offering, selling 24 million shares in a $28 to $30 range.
  • Assurant is profitable, with net income of $263 million for the nine months ended September 30, 2003.

Sources:

  • "Assurant to Price IPO at $20-$22, Trade Feb. 5," The Deal, January 2004
  • "GTx Seeks to Raise $86.25 Million in IPO," The Deal, January 2004
  • "Renovis to Price IPO at $13-$15, Trade Nasdaq," The Deal, January 2004
  • "TRW Plans $805 Million Offering," The Deal, January 2004
  • "Asset Acceptance to Price IPO at $13-$15," The Deal, January 2004