Jan 12 (Reuters) – HCI Group Inc (HCI.N) on Wednesday postponed the initial public offering (IPO) of its insurance unit TypTap Insurance Group Inc, joining a growing list of companies rethinking their plans to go public due to volatile market conditions.
TypTap confidentially filed for an IPO in August last year, when the pandemic had forced the insurance sector to rely heavily on artificial intelligence and big data to reach customers.
The decision to delay TypTap's IPO comes amid a recent sell-off in technology shares and the poor performance of several companies that went public in 2021.
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More than 60% of companies that went public last year are currently trading below their IPO price, according to data from Refinitiv.
Human resources and payroll software maker Justworks also postponed its U.S. IPO plans earlier on Wednesday, citing market conditions, while apparel chain operator Authentic Brands Group Inc withdrew its U.S. listing plans last week. read more
Founded in 2016, TypTap raised $100 million from a fund affiliated with Centerbridge Partners in February last year. The investment, representing about 11.75% of TypTap, implied a post-money valuation of about $850 million for the company.
Register now for FREE unlimited access to Reuters.comRegisterReporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath