The Fortegra Group Inc. withdrew plans for an initial public offering April 29, the day the Jacksonville-based specialty insurance company was expected to begin trading.
Fortegra sent a letter to the Securities and Exchange Commission saying “it has determined not to pursue the initial public offering.”
Its parent company, Tiptree Inc., said in a separate SEC filing April 29 that “due to prevailing market conditions and the high value Tiptree Inc. places on The Fortegra Group and its growth prospects, Tiptree has decided to withdraw the registration statement.”
Tiptree said in a news release in March it was launching the IPO because Fortegra’s value was not properly reflected in Tiptree’s stock price and the IPO could unlock that value.
Tiptree, which acquired Fortegra in 2014, would have retained 82.7% of Fortegra’s stock after the IPO, according to an updated registration statement last week.
That statement said Fortegra intended to sell 8.3 million shares at $15 to $17 each and would get net proceeds of $119.5 million in the IPO.
Tiptree said in an SEC filing last week that Fortegra’s adjusted earnings rose 46% in the first quarter to $12.8 million.
Fortegra is the main operating business for New York-based Tiptree.
“Tiptree remains committed to supporting Fortegra continue its growth trajectory and views the specialty insurer as a core operating business in the Tiptree family of companies,” the company said in the April 29 filing.