- Economical Insurance IPO plans come after the company opted for demutualization.
- Established in 1871, Economical Insurance offers car, business, home and farm related insurance services.
- Find out more about the Economical Insurance IPO in this article.
Economical Insurance and its new parent company, Definity Financial Corporation, have reportedly revealed that Definity is looking to go public.
Definity is said to have submitted the PREP prospectus with the Canadian authorities in all provinces and territories. The price of its common shares that will be offered, however, is yet to be determined.
Economical Insurance’s initial public offering (IPO) plans came into limelight after it opted for demutualization. The newly created entity, Definity, was created under the Insurance Companies Act of Canada in order to act as the Waterloo-based company’s parent organization after the demutualization is complete.
Apart from Economical Insurance, Definity will also act as the parent company of Petline Insurance Company, Family Insurance Solutions, and Sonnet Insurance Company.
Economical Insurance – All you need to know
Established in 1871, Economical Insurance offers car, business, home and farm related insurance services. In May 2021, the insurance company had received majority support from eligible policyholders for the demutualization process.
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According to Economical Insurance’s website, 97 per cent of around 630,000 eligible policyholders were in favour of demutualization.
As the majority vote supports demutualization, it is expected to transition from being held by mutual policyholders to trade publicly.
Reports suggest that the insurance company could be valued at up to C$ 1.9 billion at the time of IPO.
How to buy Economical Insurance stock?
As a timeline for Economical Insurance’ IPO has not been confirmed yet, interested investors may have to wait for a while before they can look into its stocks.
Notably, the insurance company is expected to make its public debut soon as IPOs have been high in demand this year.
Economical Insurance is likely to list its shares on the Toronto Stock Exchange. If and when the IPO happens, brokerage companies could be an option where investors can explore its pre-IPO shares.
Pre-IPO shares are often explored in the hopes of high returns, but it is crucial to keep in mind that stock prices often drop at the time of their public debut. So, it is important to study the company and its growth prospects as these details matter in stock selection.