Flagstone IPO raises $175.5 million

NEW YORK--Bermuda-based Flagstone Reinsurance Holdings Ltd. raised $175.5 million in its initial public offering, giving the company an initial market capitalization of about $1.1 billion.

The reinsurer intends to use the new capital to increase its underwriting capacity.

In the Thursday offering, 13 million Flagstone shares sold for $13.50 each. Flagstone had expected the shares to sell for between $12.50 and $14.50.

Flagstone's shares are being traded on the New York Stock Exchange under the symbol FSR.