Huize Raises $55.1 Million in IPO, Exceeds Issuance Price Early

The online insurance platform sold 5.25 million American depository shares, priced at $10.50.

Anthony Russo
    Feb 12, 2020 8:10 AM  PT
Huize Raises $55.1 Million in IPO, Exceeds Issuance Price Early
author: Anthony Russo   

Huize Holding Ltd. (Nasdaq: HUIZ) made its debut in Times Square on Wednesday, raising $55.1 million in its IPO.

The Shanghai-based online insurance platform sold 5.25 million American depositary shares, priced at $10.50 apiece, according to a press release issued by the Porda Havas International Finance Communications Group. The pricing came in around the top end of the previously stated range, as Huize said last week that it expected to sell its ADSs between $9.40 and $11.40 apiece.  

Huize opened at $10.65 per ADS, exceeding its issuance price. In early trading on Wednesday, Huize's stock reached a high of $10.83 per ADS and did not trade under its IPO price.  

The underwriters are Citigroup Global Markets Inc., China International Capital Corp., Hong Kong Securities Ltd., Tiger Brokers (NZ) Ltd. and Valuable Capital Ltd. If the firms exercise their over-allotment option, Huize would raise an additional $8.3 million.

Established in 2006, Huize offers a number of insurance products which mainly focus on long-term life and health and the younger generation in China. According to the research consulting firm Oliver Wyman, Huize was the largest independent online long-term life and health insurance products / services platform in China, as measured by GWP.

For the nine months through September 2019, Huize's revenues more than doubled to $102.8 million, representing a year-over-year increase of 123%. Net profit in the same quarter reached $3.1 million. For the full year 2018, the company generated revenues of $71.2 million with a profit of $400,00.


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