Canadian property and casualty insurer Definity Financial (Definity) has announced plans to raise C$1.25bn ($1bn) through its initial public offering (IPO).
Definity, which was formerly known as Economical Mutual Insurance Company (Economical Insurance), has priced its common shares for the IPO between C$19 ($15.26) and C$22 ($17.67) per share.
Definity expects to list on Toronto Stock Exchange (TSX) under the symbol DFY, which is subject to the approval of the TSX.
To cover any over-allotments, Definity may allow the underwriters to buy as much as 15% of the shares within 30 days of the offering.
The insurer has also announced that through a process called demutualization, Economical Insurance will change its structure from a company owned by policyholders to a company owned by shareholders.
Upon completion of the demutualization process, Definity, a new entity formed under the Insurance Companies Act (Canada), will be the parent of Economical Insurance.
Definity will also serve as the parent of other subsidiaries including Family Insurance Solutions, Petline Insurance Company, and Sonnet Insurance Company.
Notably, the Minister of Finance (Canada) has already approved the conversion plan.
BMO Capital Markets, RBC Capital Markets and Barclays are acting as the lead underwriters for the offering.
According to data compiled by Bloomberg, Definity’s IPO is the fourth-largest offering by a Canadian firm in the last five years.
