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Highlights
- Definity wants to go public on the Toronto Stock Exchange and has applied to trade under the stock symbol DFY.
- The Definity IPO will be made through the underwriters like BMO Capital Markets and RBC Capital Markets among others.
- Upon completion of the conversion process, Definity Financial will act as the parent company of Economical Insurance.
The Waterloo-based Definity Financial Corporation announced the launch of the initial public offering (IPO) on Monday, November 8, and said that it was hoping to raise approximately C$ 1.25 billion in gross proceeds.
The public debut moves come after the conversion of Economical Mutual Insurance Company (also known as Economical Insurance) to a company with share capital, in accordance with the Insurance Companies Act of Canada.
The conversion process is known as demutualization and the newly created entity- Definity Financial will act as the parent company of Economical Insurance upon completion of the process.
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Notably, the conversion plan has been approved by the finance ministry and the Letters Patent of Conversion will likely take effect before the completion of the IPO.
Definity Financial Corporation IPO: Key details
In the amended prospectus filed with the regulatory authorities, Definity Financial Corporation revealed the price range of the shares and said it plans to offer the shares between C$ 19 to C$ 22 per share.
Definity wants to go public on the Toronto Stock Exchange and has applied to trade under the stock symbol DFY.
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The initial public offering will be made through the underwriters like BMO Capital Markets and RBC Capital Markets among others.
Those interested in the financial stock could wait for the company to get listed on the stock exchange and buy the stock once it begins trading. Alternatively, if the company gives an option to buy its pre-IPO stock through trading apps, potential investors could try getting hold of those shares.
Bottom line
One of the leading casualty and property insurers in Canada, Economical Insurance has more than one million policies in force along with its subsidiaries.
Notably, as a multi-channel insurer, Definity Financial has a solid network of brokers and sells products directly to customers. According to the documents filed by the company, it has a network of around 700 independent brokerage firms and 27,000 individual brokers.
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For the three months ended June 30, 2021, the company had cash and cash equivalents worth C$ 257.4 million.
