US-based insurance technology (insurtech) company Ethos has launched its initial public offering (IPO) roadshow, with plans to achieve a valuation as high as $1.3bn.
Ethos filed for an IPO with the US Securities and Exchange Commission in September of last year.
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Combined, the company and its shareholders intend to raise up to $211m by offering approximately 10.5 million shares.
Of the total, Ethos will directly offer 5.1 million shares, with investors including Alphabet’s GV and General Catalyst divesting roughly 5.4 million shares.
The price range for the offering has been set at $18–20 per share.
Following completion, Ethos expects its Class A common stock to trade under the ticker ‘LIFE’ on the Nasdaq Global Select Market.
Ethos operates a technology platform intended to streamline several aspects of life insurance operations such as distribution, underwriting, activation, payments and administration.
The company’s system is designed to bring various insurance processes onto a single platform and enable product development and pricing adjustments.
Its application process integrates real-time validation against third-party data, aiming to reduce errors for applicants and agents.
Ethos’ underwriting engine uses predictive analytics and data feeds to support risk assessment and policy issuance.
The company also provides life insurance products, along with offerings related to wills and estate planning.
The funds raised are earmarked for strengthening the company’s capital position and supporting a public listing of its shares.
Some proceeds will be used to meet tax obligations tied to restricted stock units. Remaining capital may be allocated for general business purposes, which could include acquisitions or strategic investments if appropriate opportunities arise.
The IPO is being managed by Goldman Sachs & Co. and J.P. Morgan as lead book-runners.
BofA Securities, Barclays, Citigroup and Deutsche Bank Securities are the additional book-runners, with Citizens Capital Markets, William Blair and Baird as co-managers.
