Fortegra Group Inc. has withdrawn plans to go public on April 29, the day the Jacksonville-based specialty insurance company is expected to begin trading.
Fortegra sent a letter to the Securities and Exchange Commission saying, “They have decided not to proceed with the IPO.”
Parent company, Tiptree Inc., said in a separate SEC filing on April 29th, “Given the prevailing market conditions and the high value that Tiptree Inc. attaches to the Fortegra Group and its growth prospects, Tiptree has decided to withdraw its registration statement. “
Tiptree announced in a press release in March that it went public because the value of Fortegra was not properly reflected in Tiptree’s share price and the IPO was able to unlock that value.
Tiptree, which acquired Fortegra in 2014, would have retained 82.7% of Fortegra’s shares after going public, according to an updated registration statement last week.
That statement said Fortegra intends to sell 8.3 million shares at $ 15-17 each with net proceeds of $ 119.5 million on its IPO.
Tiptree said in an SEC filing last week that Fortegra’s adjusted earnings rose 46% to $ 12.8 million in the first quarter.
Fortegra is Tiptree’s main business area in New York.
“Tiptree remains committed to helping Fortegra continue its growth path and regards the specialty insurer as a core operating business in the Tiptree family of companies,” said the company in the file filed April 29.