Third Point's reinsurance arm went public yesterday, raising $276 million, money that will be used to boost its underwriting capacity.
Third Point Re's stock priced at $12.50 per share, the low end of its range. The underwriters also sold only 22.1 million shares, 100 million fewer than initially offered, leaving the company with nearly $100 million less than it might have raised and valuing it at almost $1.3 billion.
Even at just $12.50, however, investors were not initially impressed, as Third Point Re opened at just $12.25 this morning. It has rallied, however, and was trading above $13 at midday.
Third Point set up Bermuda-based Third Point Re two years ago and has raised $750 million for the business, which is headed by industry veteran John Berger. Third Point chief Daniel Loeb and a pair of private equity firms are among the reinsurer's primary investors.
Third Point Re invests its capital and premiums in Third Point's hedge funds.