Bamboo Insurance Targets Up to $3.24 Billion Valuation in U.S. IPO

CVC-backed Bamboo Insurance Services is targeting a valuation of up to $3.24 billion in its U.S. initial public offering, according to a filing on Monday. The Midvale, Utah-based residential property insurer plans to offer 35 million shares at $18 to $20 apiece, with selling shareholders seeking to raise as much as $700 million. The company intends to list on the New York Stock Exchange under the ticker “BMB.”

Founded in 2018 and led by insurance industry veteran John Chu, Bamboo operates as a managing general underwriter, underwriting and distributing policies on behalf of insurance carriers that ultimately assume the claims risk. The company has benefited from disruptions in California’s homeowners insurance market, where repeated wildfires have prompted some insurers to reduce their exposure. Bamboo had captured about 4% of California’s homeowners insurance market as of last year.

The IPO comes as the broader U.S. market faces a slower fall offering season, with volatility linked to higher oil prices and inflation weighing on deal activity. However, insurance IPO activity remains relatively strong despite softer pricing and more selective investors. Private equity firm CVC acquired a majority stake in Bamboo from White Mountains Insurance last year in a deal that valued the company at $1.75 billion. J.P. Morgan, Morgan Stanley, Deutsche Bank Securities, Evercore ISI and Wells Fargo Securities are among the underwriters for the offering.

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