MediaAlpha Prices Initial Public Offering
White Mountains Insurance Group, Ltd. (NYSE: WTM) announced the pricing of MediaAlpha, Inc.'s initial public offering (IPO) of 9,250,000 shares at $19 each, set to trade on the NYSE under the ticker 'MAX' starting October 28, 2020.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
White Mountains Insurance Group, Ltd. (NYSE: WTM) announced the pricing of MediaAlpha, Inc.'s initial public offering (IPO) of 9,250,000 shares at $19 each, set to trade on the NYSE under the ticker 'MAX' starting October 28, 2020. This IPO values MediaAlpha at approximately $1.2 billion. White Mountains will sell 2,991,498 shares and, post-offering, retain a 33% ownership stake valued at about $400 million. The offering is expected to close on October 30, 2020.
Positive
- White Mountains realized a gain of approximately $95 per share to book value from the MediaAlpha IPO.
- The transaction provides White Mountains with about $55 million in net cash proceeds.
- Total proceeds from the offering, including dividend recapitalization, amount to about $110 million.
Negative
- The sale of shares may lead to dilution of existing shareholders' ownership in MediaAlpha.
Details
News Market Reaction – WTM
The recorded move for WTM in the trading session of this news was -4.25%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HAMILTON, Bermuda, Oct. 27, 2020 /PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that MediaAlpha, Inc. ("MediaAlpha") priced an initial public offering of 9,250,000 shares of its Class A common stock at a price of
In the offering, 6,258,502 shares are being offered by MediaAlpha and 2,991,498 shares are being offered by White Mountains. Following the completion of the offering, White Mountains will own 21,150,598 MediaAlpha shares, representing a
At the initial public offering price, the transaction will result in a gain of approximately
The offering is expected to close on October 30, 2020, subject to customary closing conditions. In connection with the offering, the underwriters will have a 30-day over-allotment option to purchase up to an additional 769,104 shares offered by MediaAlpha and up to an additional 618,396 shares offered by White Mountains.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
About White Mountains
White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbol WTM.
CONTACT: | Todd Pozefsky |
(203) 458-5807 |
View original content:http://www.prnewswire.com/news-releases/mediaalpha-prices-initial-public-offering-301161243.html
SOURCE White Mountains Insurance Group, Ltd.
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