Bermuda domiciled reinsurance firm Third Point Reinsurance Ltd., backed by Third Point LLC hedge fund owner Dan Loeb, has announced the details of its initial public offering (IPO) today. The reinsurer will offer 22,222,222 of its common shares at an expected offering price of between $12.50 and $14.50 each.
Third Point Re is itself offering 21,524,492 common shares while certain selling shareholders are offering 697,730 common shares. Approval to list the shares offered on the New York Stock Exchange under the ticker symbol “TPRE” has been received by the firm.
Third Point Re launched its IPO in July with a prospectus suggesting that it would seek to offer $250m of shares in the firm. Last week we wrote that the maximum had been increased in an updated filing with the SEC to a possible $345m of shares. The funds are being raised to help the reinsurer grow its business and will likely be targeted to be deployed into underwriting reinsurance contracts at the January renewals.
If Third Point Re can sell the 22,222,222 shares at the upper end of the expected range, $14.50, it would raise the firm $322.22m in new capital. That would take the reinsurers capitalisation to over $1 billion when added to the roughly $750m of capital Third Point Re launched with.