Apax-backed Duck Creek shares soar in Nasdaq debut
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(Reuters) — Shares of Duck Creek Technologies Inc. jumped 55.5% in their Nasdaq debut on Friday, after the software company that serves the property/casualty insurance market raised $405 million in its upsized initial public offering.
The stock opened at $42 per share, up from the IPO price of $27 per share.
Boston-based Duck Creek, backed by private-equity firm Apax Partners LLP, sold 15 million shares at $27 apiece, above its target range of $23 to $25 per share.
The IPO valued Duck Creek at $3.46 billion.
The COVID-19 pandemic is pushing the insurance sector to rely heavily on technology to reach its customers, putting the focus on startups such as SoftBank-backed Lemonade Inc., which recently also priced its IPO well above the targeted range.
Following the pandemic-induced slowdown in global insurtech investments during the first months of 2020, $1.56 billion was raised in the second quarter, up 71% from the first quarter, according to the new Quarterly InsurTech Briefing from insurer Willis Towers Watson PLC.
The property/casualty insurance accounted for 68% of the funding.
There has been a rising demand for products that give customers instant access to their own information and help insurers cut costs.
Duck Creek said earlier this week that funds advised by Apax Partners will own about 33.8% of its common stock after the IPO, and IT consulting firm Accenture PLC will own about 22.5%.
Goldman Sachs & Co., BofA Securities and J.P. Morgan were among the bookrunners for the offering.
More insurance and risk management news on the coronavirus crisis here.
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