Ever since Tiptree Inc (NASDAQ: TIPT) announced the initial public offering of its subsidiary company The Fortega Group LLC in mid-March, its stock has recorded strong gains. Since then, the stock has gone up by 170%.
The roadshow for the Fortega IPO is going to start this week and it might be a good time for investors to take a look at the finer details. Fortega, which is the insurance arm of Tiptree, is going to offer its shares in the price band of $15 to $17 a share.
The offer price represents twice the book value. It is also important to note that if the share lists at $15 a share, then Tiptree is going to have a deal stake that is going to be worth $23 per share. Tiptree believes that The Fortega Group has considerable value and that has not yet been reflected in its own stock price. TIPT stock is up by 21.15% at $13.58 on Wednesday’s morning session.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.