Catastrophe Insurer Palomar Announces IPO Pricing, Shares Rise 1st Day of Trading

La Jolla, Calif.-based Palomar Holdings Inc. this week announced the pricing of its initial public offering of its common stock at a price of $15 per share and in its first day of trading on Wednesday it had at one point reached nearly $20 per share. Palomar is offering 5,625,000 shares of its common stock, plus up to an additional 843,750 shares that the underwriters have the option to purchase. Shares of the firm closed at $18.99, up $3.99, on a trading volume of more than 3.3 million shares. Shares reached a high of $19.96 on the day. The shares began on the Nasdaq Global Select Market on under the ticker symbol “PLMR.” The offering is expected to close on April 22, 2019, subject to customary closing conditions. The company offers insurance for earthquake, wind and flood risk. Palomar uses data analytics and a technology platform to offer customers flexible products “with customized and granular pricing on admitted basis.” Palomar sells its coverage through retail agents, program administrators, wholesale brokers, and in partnership with other insurance companies.