Conifer Holdings IPO: Everything You Need to Know

Conifer Holdings IPOShares of Conifer Holdings, Inc. (NASDAQ:CNFR) are going to hit Wall Street this week. The company submitted its S-1 filling to the Securities and Exchange Commission (SEC) on July 2, 2015 for its initial public offering (IPO). Here’s what investors need to know about the Conifer Holdings IPO. (Source: SEC, last accessed August 7, 2015.)

Who is Conifer Holdings?

The Michigan-based insurance company was founded in 2009. Through its subsidiaries, Conifer Holdings provides insurance services for both commercial and personal customers.

The company sells its product through a network of 4,500 agents and distributors. They currently have 113 employees.

What is Conifer Holdings’ Business Model?

The company has two segments: commercial and personal insurance. For the commercial segment, the company operates in four different industries: hospitality, artisan contracting, security service, and automobile repair.

For the personal end, the company is targeted especially in homeowner’s insurance products. They offer coverage for catastrophic events like hurricanes as well as dwelling insurance for owners of lower-value homes.

What is Conifer Holdings’ Revenue?

The company’s revenue rose to nearly $84.0 million in 2014, significantly higher than the $44.0 million in 2013 and $23.0 million in 2012.

For the three-month period ended March 31, the company reported $21.0 million in revenue compared to $17.7 million in 2014. For the same period, net income had improved from the net loss of $3.2 million to half a million in 2015.

What is Conifer Holdings’ IPO Price?

The company hopes to raise about $70.0 million from its public offering. The expected price range is between $13.00 and $15.00 for nearly five million shares, through major underwriters BMO Capital Markets, Raymond James, Sandler O’Neil, and William Blair.

What is Conifer Holdings’ Stock Symbol?

The company has applied to list on the NASDAQ under the symbol “CNFR.”

How Will Conifer Holdings Use the Money?

The company plans to use the net proceeds of the IPO to pay down debt. The remaining funds will be allocated to the growth of operating subsidiaries in addition to general corporate purposes.