Tab on a file folder for insurance.
Reinsurer Aurigen Capital Ltd. is backing out of an initial public offering less than one week after trimming the size of the transaction.
The company originally sought to raise $225-million with shares priced between $13 and $15 each. When soft demand and doubts about the company's valuation failed to generate the expected interest, the price per share was cut to the $9.50-to-$10.50 range. The most recent plan was for a $200-million IPO.
The deal, led by RBC Dominion Securities alongside Canaccord Genuity and TD Securities, was expected to close this week, but a person familiar with the process said the company won't be making its debut after all.
While Aurigen struggled to come to market, there have been a recent wave of IPOs and share sales in the Canada, including the energy market, indicating robust investor interest in offerings. Other IPOs such as LED-lighting business Lumenpulse Inc. saw strong demand for shares.
This came after a slow start to the year – no Canadian IPOs began to trade on the TSX in the first quarter.
Bermuda-based Aurigen is in the business of reinsuring other companies' life insurance policies. The company has operations in Canada and the U.S., with some business in its home market. It was founded seven years ago.
Aurigen investors include a George Soros fund and private equity fund Edgestone Capital Partners.