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Advantage Insurance sets price range for IPO

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Advantage Insurance sets price range for IPO

Advantage Insurance Inc. expects to sell 10 million common shares at its IPO for a price of between $9 and $11 apiece.

Underwriters have a 30-day option to buy up to 1.5 million additional common shares to cover any overallotment.

Taking into account the underwriters' option, the proposed maximum offering price is now about $126.5 million in the aggregate, or $11 per share, estimated solely for calculating the registration fee. Previously, the company filed for an IPO with a proposed maximum aggregate offering price of $150 million.

Advantage Insurance estimates that the net proceeds from the IPO will be about $91.6 million, or nearly $105.6 million if the underwriters' option is exercised in full, and after deducting estimated underwriting discounts and commissions and estimated offering expenses and assuming a pricing of the offering at $10 per share.

Advantage Insurance plans to contribute substantially all of the net proceeds from the offering to its life insurance and business insurance operating subsidiaries. The amounts contributed as surplus to the insurance company subsidiaries may be further invested in debt securities including collateralized loan obligation. Any remaining net proceeds will be used for general corporate purposes, which may include dividend payouts.

The company has applied to list its common shares on the NYSE under the symbol AVI.

Raymond James & Associates Inc., JMP Securities LLC and B. Riley FBR Inc. were listed as underwriters for the offering.