Connecticut-based specialty liability insurer Darwin Professional Underwriters made an encouraging debut on the New York Stock Exchange Arca on Friday May 19.
The company priced its initial public offering of 5.2 million common shares at $16 a share, half way between its projected range of between $15 and $17 a share. Darwin’s stock – trading under the ticker symbol of DR – opened at $17.1 on Friday and went on to close at $18.76. On Mon., May 22, the first working day following the IPO, the stock closed at $19.53.
Merrill Lynch and rival investment bank Credit Suisse were joint book-running managers on the sale.
Stephen Sills, Darwin’s chief executive, said in a statement that he was encouraged by how well the IPO was received. “Darwin is excited about our initial public offering and listing on NYSE Arca,” he said. “We look forward to the next stage of our evolution, and an outstanding and productive partnership with NYSE Arca.”
The insurer added in a regulatory filing that it will use the net proceeds from the IPO – expected to be about $75 million – to reduce its parent Alleghany’s ownership stake in the unit to 59.6% from 90%, though Alleghany will maintain a majority interest in Darwin.
Darwin is the first company to list on the NYSE Arca since the merger of the two exchanges. “We are pleased to welcome Darwin Professional Underwriters as the first addition to NYSE Arca,” said NYSE group president and co-chief operating officer Catherine Kinney in a statement.