July 18 (Reuters) - 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 Corp.
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 Friday. (Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)