July 18 Shares of Trupanion Inc rose as
much as 15 percent in their market debut, valuing the pet
insurer at $304 million, as investors bet on growing demand
among pet owners to insure their cats and dogs.
The company raised about $71 million after pricing its
initial public offering of 7.13 million shares at $10 per share,
below the expected range of $13 and $15 per share.
U.S. consumers are expected to spend $58.5 billion on their
pets in 2014, an increase of 52 percent from 2006, according to
the American Pet Products Association.
Most of Trupanion's revenue comes from the monthly premiums
it charges for insuring pets. The company's average monthly
premium for insuring a dog is $40 and for a cat $26.
The company, which is yet to make a profit, posted a loss of
$8.2 million on revenue of $83.8 million at the end of 2013.
Trupanion is backed by venture capital firm Maveron, which
has also backed companies such as eBay Inc and Potbelly
Maveron's stake will fall to 25 percent from 34 percent
after the offering. Other stakeholders include Highland Consumer
Fund and RenaissanceRe Ventures Ltd.
RBC Capital Market, Barclays and Stifel are the lead
underwriters to the offering.
The stock was up 6 percent at $10.60 in early trading on
(Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)