Definity Financial Corp., the property and casualty insurer formerly known as Economical Mutual, has raised $1.4 billion in the largest Canadian initial public offering (IPO) of the year.
A total of 63.6 million shares were sold for $22 apiece, the Waterloo, Ontario-based company said in a news release, the top end of the range it had targeted. The company is also selling another $700 million in shares in a private placement to the Healthcare of Ontario Pension Plan and Swiss Re.
Definity’s offering is one of the largest IPOs of a Canadian company in the past five years and a rare new offering from a financial firm in a year dominated by technology deals.
Definity is the seventh-largest provider of property and casualty insurance in Canada, with a 4.6% share of the market, selling under the Economical Insurance, Sonnet Insurance, Family Insurance and Petline Insurance brands.
The company’s $2.38 billion in gross written premiums in the first nine months of 2021 are up 16% from a year earlier. The shares will be listed on the Toronto Stock Exchange under the symbol "DFY."
The IPO and private placements, which add up to $2.1 billion, are expected to close on November 23.
