The IPO Buzz: Insurance Broker & A Blank Check

This week’s IPO Calendar came together on Friday with two companies set to make their public debuts. One is an online insurance comparison shopping platform with revenues and earnings, and the other is a blank check company raising money for a future acquisition.

This follows a recent pattern of a single IPO and one or more blank check deals.

On the IPO marquee this week are B. Riley Principal Merger Corp. II (BMRG.U proposed), a blank check deal that expects to raise $200 million, and SelectQuote (SLQT proposed), an online insurance broker that aims to raise $450 million.

However, Monday morning might have an additional IPO or two. We will have to wait for the SEC filing window to open for business.

Blank Check on Tap

B. Riley Principal Merger Corp. II, based in New York City, is a blank check company or special-purpose acquisition company (SPAC) that was formed recently to focus on established businesses with an aggregate enterprise value of about $400 million to $1 billion.

The company plans to offer 20 million units at $10 each on Tuesday evening, May 19th, to trade Wednesday, May 20th, on the New York Stock Exchange.

Insurance Comparison Shopping

SelectQuote, based in Overland Park, Kansas, lets consumers comparison shop online for Medicare, life, home and auto insurance quotes. The company does not provide insurance. Instead, it identifies consumers shopping for specific types of insurance and puts them in touch with its insurance carrier partners. SelectQuote earns commissions from its insurance carrier partners for the policies it sells on their behalf, according to the prospectus.

The company plans to offer 25 million shares at $17 to $19 each on Thursday evening, May 21st, to trade Friday, May 22nd, on the New York Stock Exchange.

Note: Analysts have been pointing to EverQuote (EVER) as a comparison with SelectQuote. Consider the following:

  • EverQuote reported for the TTM (Trailing Twelve Months) revenues of $277.9 million and a net loss of $4.18 million.
  • SelectQuote reported for the TTM revenues of $464.5 million and net income of $74 million.

EverQuote stock closed on Friday, May 15, at $49 on the NASDAQ.

(For more information on these companies, please check the IPO profiles on IPOScoop’s website.)

Final Week of May

This brings us to the week of May 25th when Wall Street will be closed on that Monday for Memorial Day and the IPO Calendar is blank so far for that four-day work week. But some names could pop onto the IPO Calendar when the U.S. Securities and Exchange Commission’s filing window opens again for business on Monday, May 18th.

Stay tuned.

Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinion.