(Reuters) – Shares in Duck Creek Technologies Inc. jumped 55.5% in its Nasdaq debut on Friday, after the software company serving the real estate and non-life insurance market raised $ 405 million in its large initial public offering.
share opened at $ 42 per share, up from the stock price of $ 27 per share.
Boston-based Duck Creek, backed by private equity firm Apax Partners LLP, sold 15 million shares at $ 27 apiece, over its $ 23 target range of $ 23 to $ 25 per share.
The IPO valued Duck Creek at $ 3.46 billion.
The COVID-19 pandemic drives the insurance industry to rely heavily on technology to reach its customers, focusing on startups such as SoftBank-backed Lemonade Inc., which also recently priced its IPO well above the target range.
Following the pandemic-induced decline in global insurtech investments in the first months of 2020, $ 1
The real estate insurance accounted for 68% of the financing.
It has increased the demand for products that give customers direct access to their own information. and helps insurance companies reduce costs.
Duck Creek said earlier this week that funds advised by Apax Partners will own approximately 33.8% of its joint stock after the IPO, and IT consulting firm Accenture PLC will own approximately 22.5%.
Goldman Sachs & Co., BofA Securities and JP Morgan were among the bookkeepers for the offer.
More insurance and risk management news about the coronavirus crisis here .