UPDATE 1-CastlePoint IPO raises $111 million, within range
(Adds market cap and details)
NEW YORK, March 22 (Reuters) - CastlePoint Holdings Ltd., a Bermuda-based property and casualty insurance and reinsurance firm, raised $111 million on Thursday with an increased initial public offering that was priced within a forecast range.
The 7.7 million share offering, which was increased from 6.2 million shares, sold for $14.50 per share compared with a $13 to $15 forecast range, according to an underwriter.
The offering price gives the company an initial market capitalization of $517 million.
Selling stakeholders offered about 119,500 shares, while the company sold about 7.6 million shares, according to an underwriter.
The company, which will not receive funds from the selling shareholders, plans to use proceeds from the offering for general corporate purposes, according to an amended offering document filed with the U.S. Securities and Exchange Commission.
CastlePoint, sponsored by New York specialty property and casualty insurance company Tower Group Inc. (TWGP.O), is a Bermuda holding company that provides property and casualty insurance and reinsurance to small insurance companies and program underwriting agents in the United States.
Incorporated in November 2005, the company is among a group of reinsures that has filed for IPOs to capitalize on a record year in profits for the industry and an expected rise in reinsurance rates, the prices insurers pay for their own insurance.
Flagstone Reinsurance Holdings Ltd. is scheduled to offer shares next week, while Validus Holdings Ltd. and Greenlight Capital Re Ltd. have yet to announce a pricing date after filing for their own offerings in January.
Underwriters for CastlePoint, led by Friedman Billings Ramsey, will have the option to buy another 1.1 million shares to cover over-allotments, according to an underwriter.
The company intends to list its shares on the Nasdaq under the symbol "CPHL" CPHL.O.
