A Wayzata-based insurance company, Trean Insurance Group Inc., has filed a registration statement with the Securities and Exchange Commission for an initial public offering of stock.
The company didn't disclose how many shares it was offering or at what price but the filing fee suggests it is looking to raise approximately $100 million.
The company said in the Friday filing that it plans to use the proceeds of the offering to redeem preferred shares, pay down some existing debt and end an existing consulting and advisory agreement.
Trean sells property and casualty insurance for specialty markets, particularly workers' compensation insurance markets, primarily through its subsidiary Benchmark Insurance Co.
The company's business has been growing quickly. In 2019 the company had gross written premiums of $411.4 million and earned $31.3 million up from $144.9 million in gross written premiums and net income of $7.9 million in 2015. Almost half its business is underwritten in California.
As of March 31, the company has 240 employees and in addition to its Wayzata headquarters has offices in California, Florida, Idaho, Missouri, Montana, New Mexico, Nevada, Oregon and Utah.
Andrew O'Brien, the company's chief executive and founder, started the business in 1996.
The company's largest shareholder is the private-equity firm Altaris Capital Partners, which controls several seats on the board of directors.
The ultimate amount raised through a successful offering would depend on the number of shares offered and the price per share. A company generally makes several amended filings with the SEC over a period of weeks to months before shares are priced and start trading.
Underwriters of Trean's equity offering include JPMorgan, Evercore ISI and William Blair.
According to IPO Renaissance, a provider of pre-IPO research and IPO focused investment products, 56 IPOs have priced so far in 2020, down 22% from the same period a year ago.
According to the firm, about half the IPOs in the last year have been from health care companies, followed by technology and financial companies.
A Minnesota company hasn't completed an IPO on a U.S. exchange in a little more than two years, when Golden Valley-based Inspire Medical completed a $124 million offering. Earlier this year, Jamf, a Minneapolis-based software company, had reportedly made a confidential filing with the SEC for a proposed IPO.