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Insurance Co. James River Trades Up 11% In Debut
By Shasha Dai
CHAPEL HILL, N.C., August 10, 2005—Insurance Stock of insurance company James River Group Inc. traded up 11.1% from an offering price of $18 to close at $20 per share on its market debut Tuesday.
The Chapel Hill, N.C., underwriter of property and casualty insurance said it expects to receive about $74.4 million in net proceeds from the offering. In addition, the underwriters have a 30-day option to buy up to an additional 666,600 shares at $18 per share.
James River intends to use the proceeds to increase the capital at its insurance subsidiaries, fund future acquisitions and for other corporate purposes.
The company, which was founded in 2002 and wrote its first insurance policy in July 2003, initially filed to go public in May.
James River's private equity sponsors MMC Capital, High Ridge Capital and ACI Capital Co. aren't offering any shares. After the IPO, they still hold 20%, 16%, and 12%, respectively, of the shares.
Keefe Bruyette & Woods Inc. acted as the lead underwriter for the offering, which was co-managed by Bear Stearns & Co., Friedman Billings Ramsey & Co. and Wachovia Capital Markets LLC.
The company trades on the Nasdaq National Market under the symbol JRVR.
Reach MMC Capital at 203-862-2900; High Ridge at 203-831-0104.
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