Duck Creek Technologies Inc, a software company that serves the property and casualty (P&C) insurance market, on Wednesday raised the price range for its initial public offering (IPO) and expects to raise about $375 million.
Boston-based Duck Creek, which is backed by private-equity firm Apax Partners, expects its offering of 15 million shares to be priced in the range of $23 to $25 per share, valuing it at about $3.21 billion at the top end of the range. The company had earlier expected its IPO to be priced between $19 and $21 per share.
The coronavirus pandemic is pushing the insurance sector to rely heavily on technology to reach its customers, putting the focus on startups such as SoftBank-backed Lemonade Inc, which recently priced its IPO well above the targeted range.
Following the COVID-19-induced slowdown in global insurtech investment during the first months of 2020, $1.56 billion was raised in the second quarter, up 71% over the first quarter, according to the new Quarterly InsurTech Briefing from Willis Towers Watson.
The P&C sector accounted for 68% of funding.
Insurance software companies have seen rising demand for products that give customers instant access to their information and help insurance providers cut costs.
Duck Creek said funds advised by private equity firm Apax Partners will own about 33.8% of its common stock post the IPO, while IT consulting firm Accenture will own about 22.5%.
Goldman Sachs & Co, BofA Securities and J.P. Morgan are among bookrunners for the offering.