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SelectQuote makes secondary stock offering of 10.6M shares

By Madison Parry

Shareholders with the insurance services agency are looking to sell 10.6 million shares of common stock through a secondary offering, which could turn over nearly $400 million. SelectQuote's initial public offering in May 2020 was estimated at $360 million.

This week, Overland Park-based insurance services company, SelectQuote Inc., has made a secondary offering from three of its shareholders as well as the company’s top private equity backer, Connecticut-based Brookside Equity Partners LLC.

The secondary offering aims to sell 10.6 million in common stock which could bring in around $400 million.

In early February 2021, SelectQuote reported earnings from its fiscal second quarter (ending Dec. 31) that displayed a 103 percent increase in year-over-year revenue.

Stock could reach $400 million in value if it reaches $32.81 USD. As of Tuesday afternoon, SelectQuote stock was valued at $28.83, a drop from $32.23 USD at end-of-day Monday, March 1.

The secondary offering includes a 30-day option for the underwriters to purchase up to an additional 1.59 million shares.

The number of shares outstanding will not change and SelectQuote will not receive any proceeds from the sale.

Aside from Brookside, the three selling shareholders inlcude SelectQuote founder Charan Singh (2.6 million shares), Vice Chairman and Director William Grant II (2 million shares) and former director David Paulsen (1 million shares).