Orion180 targets $1.7 billion valuation in IPO

Orion180 Insurance is seeking to raise up to $340 million through its initial public offering.

Founded in 2018, Orion180 is the second-largest E&S homeowners insurer in the US by direct written premiums. It operates in 14 states and has written approximately $601 million in managed premiums over the past 12 months, selling more than 670,000 policies through over 14,000 active independent agents. The company offers E&S and admitted homeowners insurance, private flood insurance and ancillary products. Its services businesses generate about 70% of revenue, while its in-house carriers issue policies and reinsure most of the risk.

It plans to offer 20 million shares of Class A common stock at an expected price of $15 to $17 per share, according to an amended registration statement filed with the SEC. At the top of the range, Orion180 would be valued at approximately $1.7 billion. The underwriters have a 30-day option to purchase an additional 3 million shares, potentially increasing the offering to $391 million. Orion180 expects net proceeds of approximately $296 million at the midpoint, or $341 million if the option is exercised in full.

The company plans to use the proceeds to support growth and for general corporate purposes. It may also repay some of the $282 million outstanding under its new credit facility.

Orion180 has applied to list on Nasdaq under the ticker “OIG.” RBC Capital Markets, UBS Investment Bank and Raymond James are leading the offering.

Following the IPO, founder and CEO Kenneth Gregg will own about 60.5% of Orion180’s outstanding shares and control 93.9% of its voting power through Class B shares carrying 10 votes each.